Economics
China Lockdowns Cost at Least $46 Billion a Month, Academic Says
- CUHK economist says impact could double with stricter controls
- Researchers using truck data to track effect of restrictions
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China’s Covid lockdowns are likely costing the country at least $46 billion a month, or 3.1% of GDP, in lost economic output, and the impact could double if more cities tighten restrictions.
That’s a minimum estimate from an economist at the Chinese University of Hong Kong based on the assumption that cities generating about 20% of China’s gross domestic product are currently imposing targeted lockdowns. That cost would double if those areas had to follow Shanghai and impose stricter policies requiring most residents to remain at home.