Thread: The biggest risk to the global economy no one is talking about

New York (CNN Business)Nearly 400 million people across 45 cities in China are under full or partial lockdown as part of China's strict zero-Covid policy. Together they represent 40%, or $7.2 trillion, of annual gross domestic product for the world's second-largest economy, according to data from Nomura Holdings.


Analysts are ringing warning bells, but say investors aren't properly assessing how serious the global economic fallout might be from these prolonged isolation orders.


"Global markets may still underestimate the impact, because much attention remains focused on the Russian-Ukraine conflict and US Federal Reserve rate hikes," Lu Ting, Nomura's chief China economist and colleagues wrote in a note last week.


Most alarming is the indefinite lockdown in Shanghai, a city of 25 million and one of China's premiere manufacturing and export hubs.


The quarantines there have led to food shortages, inability to access medical care, and even reported pet killings. They've also left the largest port in the world understaffed.


The Port of Shanghai, which handled over 20% of Chinese freight traffic in 2021, is essentially at a standstill. Food supplies stuck in shipping containers without access to refrigeration are rotting.

MORE Stocks week ahead: The biggest risk to the global economy no one is talking about - CNN

Feels like 2020 all over again.

They've done a sterling job containing Covid until now, but..... this Omicron variant is a different beast. I think it's time for China to abandon the pipedream of 'zero Covid', just as the rest of the world has. Some talk of a rift between Chairman Xi and the Chinese Premier in this regard.

Get triple, quadruple vaxxed, whatever- but life goes on, and right now people in HK and Shanghai are getting pretty miserable about it- because life isn't going on.

^ they launched it with their secrecy, they then compounded it internally and in some Asian counties with their vaccines which were next to useless, so i remain unclear just how sterling their job has been. You add in their less than transparent notifications and you have OhOh levels of reporting which no one outside Chinkyland believes.

During the Covid pandemic, average longevity in China has surpassed that of the US for the first time ever. Maybe that is a temporary blip, but it certainly represents a job well done. But go ahead, find a Conspiracy theory out of it.

Originally Posted by sabang

but it certainly represents a job well done. But go ahead, find a Conspiracy theory out of it.

Why would i need to search for a conspiracy theory. The fact, denied by your Chinky mates is they were the source of the pandemic so all stat bets are off