Concerns about an impending economic setback are growing in tandem with rising numbers in China. That’s why the leadership in Beijing now wants to avoid an excessive economic slowdown with aid packages for the economy. This was reported by state media on Friday, citing the Communist Party’s Politburo.
The strict and increasingly controversial zero Covid strategy is straining many companies, disrupting supply chains and putting jobs at risk. After Shanghai, more and more Beijing residents are being forced to stay at home to avoid further corona infections.
“Covid-19 and the crisis in Ukraine have led to increasing risks and challenges,” the state-run Xinhua news agency said, citing the Politburo. China will help industry, but also small businesses. Likewise, healthy development of the property market will be promoted and the stable functioning of capital markets will be ensured.
Growth of just 4.4 percent
From the point of view of economists, more momentum is needed to hit the government’s 5.5% growth target this year. The International Monetary Fund only expects growth rates of 4.4 and 5.1 percent for China – the world’s second-largest economy after the US – this year and next.
For comparison: in 2021 it was still 8.1%.