Delta outbreak in China slows the Economic recovery
The economy of China slowed down in July, and the country’s officials are worried about the results. The spread of the Delta strain stopped the economic growth. In China, retail sales expanded 8.5% in July from a year earlier, slower than the 10.9% predicted by economists.
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Economists were waiting for different results.
The Chinese economists were waiting for significant growth in the second half of the year. As you may know, the officials of China softened the lockdown and pandemic rules. The economy started growing just like predicted in the second quarter of the year. The second part of the year is very different. The delta variant is going strong in China, and new cases reach new heights. According to the latest data, economists believe that economic recovery will be prolonged compared to forecast.
CNBC Business had a very interesting interview with the Asian market expert. It seems that Delta has influenced badly on Chinese economy's recovery.
Strategy – “Zero cases of covid-19.”
The government of China had a very interesting strategy for 2021. The “Zero cases of covid-19” was very interesting at first, but it was not a good decision economy-wise. It seems that the biggest companies in China have already cut the growth projections for the last quarter of the year. Aggressive moves and decisions from the government to reach ‘zero cases of covid-19’ was very harmful to the economy in general.
Economic growth is losing steam.
Experts in China’s economy gave an exciting interview to the Boston Globe. Economists believe that the economic growth of the country is losing steam. The decisions of the government in the second quarter were very harmful to the business operators. Additional cases of Delta strain are going strong, so it will add extra harm to the economy. China knows that the economy needs more help from the officials. They started working on new packages to support business operators.
at the end of the first quarter of 2021, there was a different situation in China. Watch DW News report about the boom of Chinese economy in the first quarter of the year. How things changes since the Delta surge!
