Economics
China’s Covid Zero Policy Makes 2020-Style Rebound Unlikely
- Early data show magnitude of slump not as big as two years ago
- But extended lockdowns now mean more business disruptions
A man is tested for Covid-19 at his home in Xiayi in China's central Henan province, on May 10.
Photographer: AFP/Getty Images
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China’s tightening Covid rules and extended lockdowns are making a 2020-style V-shaped economic recovery a dim possibility this time around.
The slump in output may not be as deep as two years ago, when most of the country was under some form of restriction from late January through much of February following the outbreak in Wuhan. Currently, areas making up only about 30% of gross domestic product are under full or partial lockdown, according to estimates from Nomura Holdings Inc.