Economic activity is adversely affected in China, where Covid measures have been relaxed.
After the emergence of millions of cases, this time in China, where the Covid measures were relaxed, the country’s citizens took their own actions, negatively affecting the economic activity.
According to the cumulative index compiled by Bloomberg from eight leading data, economic activity in December decreased compared to November.
The Chinese economy was struggling even before the Covid bans were lifted. However, according to high-frequency data, although the prohibitions were raised, the mobility of Chinese citizens did not show a rapid recovery. In the capital Beijing, 70 percent fewer subway journeys were made on Thursday compared to 2019. Traffic density was also able to reach 30 percent of January 2021 levels.
Decreased mobility also negatively affects retail sales. There are signs of further decline in Chinese retail sales, which have not been able to recover during the Covid period. Auto sales, which are the glass half full in Chinese retail sales data, have also declined since November.
On the other hand, the spread of Covid continues with the lifting of the measures. After the National Health Committee stopped publishing statistics in China, many major cities think the number of cases will peak in January.
