China’s Q4 GDP hits early speed bump as COVID-19 stifles economy

China's Q4 GDP hits early speed bump as COVID-19 stifles economy

“STAY AT HOME’

Despite the drop, the cities of Guangzhou, Zhengzhou and Xian have reported a resurgence, risking the implementation of more curbs on their combined population of more than 44 million.

The cities – major domestic logistics hubs and producers of everything from autos and auto parts to machinery and electronics – reported a total of 804 new local cases for Oct 18 to Oct 24, up from 431 in the previous seven-day period.

In Zhengzhou, residents of some districts have been told to “stay at home”, while dine-in is prohibited at restaurants. Schools, childcare institutions and off-campus training institutions function online only.

Zhengzhou’s metro traffic slumped 79 per cent from Oct 11 to Oct 15, according to the latest available data.

In Guangzhou, colleges have been closed since Monday in one district, while primary and secondary schools and kindergartens have gone online and restaurants have been shuttered since last week. In another district, cinemas, theatres, bars, gyms and internet cafes were closed until Wednesday.

Metro traffic in Guangzhou dropped 8.8 per cent during Oct 18 to Oct 24 from the previous week, Reuters calculations based on data released by local metro operators showed.

“With the ‘dynamic clearing’ COVID strategy likely to stay in place for the foreseeable future, consumption is unlikely to rebound,” said Chinese research group Gavekal Dragonomics.