Another Chinese city grinds to a halt
There’s more bad news coming out of China, which is shutting down more cities due to its strict zero-Covid policy. This is weighing heavily on the Chinese economy. And a slower Chinese economy means slower global growth.
Even before the current wave of lockdowns, China was forecast to grow only about 3% this year, according to the IMF. That would be the slowest pace in 40 years.
Our first chart tracks plummeting road and rapid-transit use in Chengdu, the mega-city that recently had its lockdown extended indefinitely. More urban areas could follow, as our second chart shows: an increasing number of regions are being classified as medium- or even high-risk areas for Covid-19 outbreaks.