Prognosis
Shanghai Braces for Long Road to Recovery as Lockdown Ends
- Data from Wuhan or Xi’an shows how long it takes to rebound
- Truck traffic in Shanghai picking up but still depressed
Commuters at a subway station in Shanghai on June 1.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Shanghai faces weeks, if not months, of slow recovery until economic activity can fully bounce back from the crippling Covid lockdown that began in March.
Based on the experiences of other Chinese cities like Wuhan in 2020 and Jilin earlier this year, it will take time for shops to reopen or factories to secure supplies and ramp up production. Labor shortages could emerge and the knock to business and consumer confidence will likely linger.