COVID-19 Cases Increase in China, Slowing Global Economic Recovery
- AP Photo/John Minchillo
VIVA – In early 2023, China was again reportedly hit by a surge in COVID-19 cases. The trigger for the increasing of COVID-19 cases because the Chinese government relaxed the tightening rules on December 7, 2022. Several countries in the world anticipated the impact of the COVID-19 surge in China by imposing strict controls on travelers from China who arrived in their respective countries.
CEO of Grant Thornton Indonesia, Johanna Gani, delivered her analysis regarding the condition of COVID-19 in China. She assessed that the recent surge in COVID-19 in China has slowed down the global economic recovery process.
China is an important export source for the manufacturing industry. In addition, China is also an important market for many global commodities such as crude palm oil, copper, soybeans, coal, and iron ore, steel, she explains.
"Answering these concerns, ASEAN countries, as well as Indonesia, have adequately maintained macroeconomic conditions as shown by increasing consumption patterns and income levels," Grant said, in his statement, Friday, January 20, 2023.
Warga di China saat melakukan swab tes COVID-19
- AP Photo/Ng Han Guan
Grant emphasized that Bank Indonesia (BI) has proven to do its job by maintaining the structural stability of the rupiah. Thus, it is expected that the impact of the COVID-19 explosion in China on the economy can be at a minimum level.
According to her, this is supported by the easing of the zero covid policy from the Chinese government. She said the policy would indirectly support the movement of the rupiah exchange rate.
"Even so, the government must be prepared to anticipate the worst-case scenario to stabilize the domestic market and ensure the availability of domestic supplies," Grant explained.
China has become a global concern due to the explosion of COVID-19 cases in the country. The policy of loosening the tightening of rules has even triggered a surge in cases.
Since the policy was relaxed, several cities in China have been affected by COVID-19. This is worrying because around eight million unvaccinated Chinese citizens are over 80 years old. Then, more than 160 million others have diabetes.
The World Economics survey shows China's business confidence fell to its lowest level since January 2013. The survey showed business activity fell sharply in December 2022 with an index of sales managers in the manufacturing sector.
