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Covid-19: China lockdowns costing $46 billion a month, say experts

A worst-case scenario would be a lockdown of all cities for one month, which would cut national GDP by 53 per cent over that period.

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People wearing personal protective equipment walk at the Hong Kong-Zhuhai-Macao Bridge Hong Kong Port, amid the coronavirus pandemic, in Hong Kong (Photo:Reuters)

Bloomberg
China’s Covid lockdowns are likely costing the country at least $46 billion a month, or 3.1 per cent of GDP, in lost economic output, and the impact could double if more cities tighten restrictions.

That’s a minimum estimate from Zheng Michael Song, an economist at the Chinese University of Hong Kong based on the assumption that cities generating about 20 per cent of China’s gross domestic product are currently imposing targeted lockdowns. That cost would double if those areas had to follow Shanghai and impose stricter policies requiring most residents to remain at home. The 3.1 per cent estimate — equivalent

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First Published: Mar 30 2022 | 12:23 AM IST

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