**China’s zero-Covid policy keeps a grip on the economy as GDP growth slows and youth unemployment soars**.
China’s economy grew by just 0.4% in the second quarter of 2023, the slowest pace since the Covid-19 pandemic began. The country’s strict zero-Covid policy, which has involved lockdowns and mass testing, has taken a toll on businesses and consumers..
Youth unemployment in China is also rising, with the rate among 16-24 year olds hitting a record high of 19.3% in June. This is due in part to the fact that many young people have been unable to find jobs during the pandemic..
The Chinese government has acknowledged the challenges facing the economy and has taken some steps to try to stimulate growth. However, it is unclear whether these measures will be enough to offset the impact of the zero-Covid policy..
**What is China’s zero-Covid policy?**.
China’s zero-Covid policy is a set of measures that the government has implemented in an attempt to eliminate the spread of Covid-19. These measures include:.
* **Lockdowns:** When an outbreak of Covid-19 occurs, the government will often lock down the affected area. This means that people are not allowed to leave their homes or businesses, and all non-essential activities are suspended..
* **Mass testing:** The government has also implemented a mass testing program. This involves testing millions of people for Covid-19, even if they do not have any symptoms..
* **Contact tracing:** The government also uses contact tracing to track down people who have been in contact with someone who has tested positive for Covid-19. These people are then required to quarantine themselves..
**What impact has China’s zero-Covid policy had on the economy?**.
China’s zero-Covid policy has had a significant impact on the economy. The lockdowns and mass testing have disrupted supply chains and caused businesses to close. This has led to a slowdown in economic growth and an increase in unemployment..
The zero-Covid policy has also had a negative impact on consumer confidence. People are reluctant to spend money when they are worried about the possibility of being locked down or losing their jobs. This has led to a decline in consumer spending and a further slowdown in economic growth..
**What are the prospects for China’s economy?**.
The prospects for China’s economy are uncertain. The zero-Covid policy is still in place, and it is unclear when it will be lifted. This is making it difficult for businesses to plan for the future and is deterring investment..
The Chinese government is trying to stimulate growth, but it is unclear whether these measures will be enough to offset the impact of the zero-Covid policy. The government is also facing pressure to ease the zero-Covid policy, but it is reluctant to do so because of the risk of a resurgence of Covid-19 cases..
The outlook for China’s economy is therefore uncertain. The zero-Covid policy is a major drag on growth, and it is unclear when it will be lifted. This is making it difficult for businesses to plan for the future and is deterring investment. The government is trying to stimulate growth, but it is unclear whether these measures will be enough to offset the impact of the zero-Covid policy..
