Xi faces economic chaos as millions plunged BACK into lockdown after minor Covid outbreak

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The new wave of infections comes at a time China is already facing a number of pressures on its economic outlook.

Craig Botham, Chief China+ Economist at Pantheon Macroeconomics, commented: “Soaring energy prices are adding to cost pressures for firms, and related fuel shortages are disrupting logistics.

“Households, meanwhile, face rising unemployment, and even those with jobs are finding it harder to spend money as Covid cases—and restrictions—rise once again.”

The sluggish outlook for China’s economy has led to speculation the central bank will cut interest rates this week in a bid to try to stimulate growth with comments supporting this coming from former central bank adviser Yu Yongding.

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