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China: Economy cripples as factories forced to shut down in amid Covid surge

Written by  Dinkle Popli -- December 26th 2022 07:11 PM
China: Economy cripples as factories forced to shut down in amid Covid surge

China: Economy cripples as factories forced to shut down in amid Covid surge

Hong Kong, December 26: The rapid spread of Covid-19 infections in China has forced many people to stay indoors, emptying shops and restaurants. As more workers get affected, so do factories and businesses. People have been forced to close or cut production, CNN reported.

Also Read | Covid 19: First intranasal vaccine as booster dose now available in India; available at private centres


China's economy was already struggling when Beijing suddenly relaxed its strict zero-coronavirus policy. Extensive lockdowns slashed retail sales in November and pushed the unemployment rate to its highest level in six months. Auto and home sales plummeted in the first few weeks of December. Auto-makers sold 946,000 vehicles from December 1 to 18, down by 15% from the same period last year, according to the latest statistics from the China Passenger Car Association. 


Home sales in the top 30 cities fell 44% last week compared to the same period last year, according to Chinese financial data provider Tier 1 cities such as Beijing and Shanghai saw home sales fall 53% year-over-year last week, according to CNN.

Many factories had to close for weeks due to sick workers and lack of orders, according to Chinese media.

Media reported Monday that several furniture factories in eastern Jiangsu province have instructed employees to take an early long vacation to celebrate the Chinese New Year. This year's Chinese New Year holidays are from January 21st to 27th.

China's economy has been hit hard as the wave of COVID-19 sweeps the country.

There are no clear data on the extent of the spread of the virus nationwide since the world's second largest economy eased its Covid restrictions significantly earlier this month.

However, some cities and states are seeing tens of thousands of new cases a day, CNN reports.

Also Read | Covid surge: Wear face mask, avoid large gatherings and follow social distancing, says IMA advisory


- ANI

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