China's zero-Covid policies pushing economy to 'near breaking point': report

China's mission to wipe out COVID-19 has left its economy in shambles.

ADVERTISEMENT
Image
Jarryd Jaeger Vancouver, BC
ADVERTISEMENT

China's mission to wipe out COVID-19 has left its economy in shambles. China's economy is reeling as the nation continues its mission to wipe out COVID-19.

The Yuan is weakening by the day, growth forecasts have been slashed, and the government has shifted into recovery mode.

On Tuesday, Societe Generale analysts suggested that the Chinese economy has been pushed to "near breaking point" as a result of the lockdowns, which have brought entire cities to a halt.

This, in turn, has lead to supply chain issues, panic buying, and a general sense of uncertainty for those in China and around the world.

As CNN reports, investment banks have reduced their expectations for China's economic growth, with the International Monetary Fund putting it at 4.4 percent, down from 4.8 percent and far below the Chinese government's forecasted 5.5 percent.

The Yuan has dropped to its lowest level since 2020, and the Chinese stock market is not faring much better, with tech stocks being among the hardest hit.

Despite this, China has remained steadfast in its quest to achieve zero-COVID as more cities roll out massive testing and lockdown policies.

In an attempt to fix the economy, Chinese president Xi Jinping announced during a meeting of the Central Committee for Financial and Economic Affairs that he plans to  go "all out" on domestic infrastructure spending.

According to CNBC, Lisheng Wang and a team at Goldman Sachs said that this "suggests to us that Chinese policymakers have been increasingly aware of the strong growth headwinds from Covid restrictions and continued property downturn, and thus becoming more determined to ramp up policy easing measures."

With COVID-19 continuing to wreak havoc on China's major cities, it remains unclear how the proposed projects would jive with the nation's strict public health policies.

ADVERTISEMENT
ADVERTISEMENT

Join and support independent free thinkers!

We’re independent and can’t be cancelled. The establishment media is increasingly dedicated to divisive cancel culture, corporate wokeism, and political correctness, all while covering up corruption from the corridors of power. The need for fact-based journalism and thoughtful analysis has never been greater. When you support The Post Millennial, you support freedom of the press at a time when it's under direct attack. Join the ranks of independent, free thinkers by supporting us today for as little as $1.

Support The Post Millennial

Remind me next month

To find out what personal data we collect and how we use it, please visit our Privacy Policy

ADVERTISEMENT
ADVERTISEMENT
By signing up you agree to our Terms of Use and Privacy Policy
ADVERTISEMENT
© 2024 The Post Millennial, Privacy Policy | Do Not Sell My Personal Information