Economics
China’s Regular Covid Testing to Cost 1.8% of GDP, Nomura Says
- Nomura argues testing not sufficient to contain omicron
- Testing could act as fiscal stimulus, Goldman argues
Healthcare workers at a Covid-19 testing facility in Shanghai, on May 5.
Source: Bloomberg
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Chinese cities are moving toward regular mandatory free testing for Covid-19, an approach that would cost the government 1.8% of gross domestic product if it’s rolled out to more places, according to an estimate from Nomura Holdings Inc.
Testing 70% of the population every two days would amount to 8.4% of China’s fiscal expenditure, Nomura economists led by chief China economist Lu Ting wrote in a note. That’s based on the cost of a single-person polymerase chain reaction, or PCR, test of 20 yuan.