China’s ‘zero Covid’ policy could deal another blow to the supply chain crisis, according to international credit rating agency Moody’s.
Moody’s Analytics Senior Economist Katrina Ell stated that the problems that have been going on for about a year in the global supply chain will decrease in the first months of the year, “Therefore, we may see downward pressure in areas such as producer prices and input prices. However, China’s closure of important ports and factories within the scope of its zero Kovid policy may increase the problems, “she commented.
The Beijing government has been implementing a ‘zero Covid’ policy, which includes a number of measures such as travel bans between countries and cities, to control the virus since the beginning of 2020, when the pandemic began.
Restrictions to prevent the virus are hitting global activities such as manufacturing and shipping. Finally, it is feared that the rapidly spreading Omicron variant will also deal a new blow to these sectors.
Goldman Sachs on Tuesday lowered its 2022 growth forecast for China to 4.3 percent from 4.8 percent, predicting that the restrictions imposed by the ohmron variant will hit economic activity.
