(Belga) The health of Chinese industry unexpectedly deteriorated in July due to strict coronavirus control measures, combined with the authorities’ zero Covid policy. The purchasing managers’ index (PMI index) fell from 50.2 to 49 points, the Chinese statistics agency reported on Sunday. An index below 50 indicates a contraction in industrial activity.
As the rest of the world tries to live with the coronavirus, China continues to pursue its zero-tolerance policy to stop new outbreaks of the outbreak. On Wednesday, the government placed a million people in lockdown in Wuhan following several infections. The economic recovery is suffering heavily from these strict measures, which have proven to be less effective once morest the omicron variant. In the second quarter, the world’s second largest economy grew by 0.4% compared to the same period last year. This is the weakest growth in gross domestic product since the start of the pandemic. The government had forecast 5.5% growth for this year, which does not seem realistic. Instead, experts expect around 4%. (Belga)
