Chinese holidays will give an economic boost to the economy
2023.01.17 02:07
Chinese holidays will give an economic boost to the economy
By Ray Johnson
Budrigannews.com – As the country’s mass migration for the Lunar New Year holidays kicked into high gear on Tuesday, urban workers crowded train stations in China’s largest cities. This was an early sign of economic recovery as officials confirmed a historic decline as a result of COVID-19 curbs.
After three years of COVID restrictions and lockdowns, data showed on Tuesday that the world’s second-largest economy slowed significantly in the fourth quarter. This caused growth in 2022 to fall to one of its lowest levels in nearly half a century.
The economy stands to benefit from hundreds of thousands of people a day spending more as they return to China’s hinterland with mass travel for the Lunar New Year now possible for the first time in nearly three years following the relaxation of some of the strictest COVID restrictions in the world.
Although many economists predict a gradual return to economic normalcy as the COVID’s impact diminishes, some see the Lunar New Year as a welcome boost to early consumption.
Nie Wen, an economist at the investment firm Hwabao Trust based in Shanghai, stated, “Peak infections passed in major cities in January, and with the Spring Festival coming, tourism is back, and the signs of a recovery in consumption are obvious.”
However, health professionals are concerned that the COVID outbreak will continue to grow even as workers leave, making the elderly in rural villages particularly at risk.
World Health Organization (WHO) officials are seeking a more comprehensive accounting of death rates despite Chinese authorities confirming a significant increase in deaths on Saturday, announcing that nearly 60,000 people with COVID had died in hospitals between December 8 and January 12.
After a warning last week that China was significantly under-reporting the number of deaths caused by the virus, the WHO expressed its earlier approval of Saturday’s announcement.
In a statement to Reuters, the World Health Organization (WHO) stated that the U.N. agency wants information on so-called excess mortality, or the total number of deaths beyond the norm during a crisis.
Monday’s statement stated, “This is especially important during periods of surges when the health system is severely constrained.”
After WHO Director General Tedros Adhanom Ghebreyesus spoke with Ma Xiaowei, director of China’s National Health Commission, over the weekend, the organization added that it would continue to provide advice and support to China. However, it had not yet scheduled a formal meeting with Chinese officials.
Between January 7 and February 15, many Chinese city dwellers will make the most of their first chance to travel for Lunar New Year to see extended family in their home regions since the pandemic began, according to estimates provided by the Ministry of Transport.
At the beginning of December, Chinese officials discontinued Beijing’s “zero COVID” policy, which had previously been supported by Xi Jinping, the leader of the ruling Communist Party. As a result, the virus continued to spread unchecked among the country’s population of 1.4 billion people.
State media reported that the Spring Festival holiday, which is regarded as the world’s largest annual mass migration prior to COVID, would see 390,000 passengers depart Shanghai train stations on Tuesday alone.
Despite the risks, some travelers in Shanghai, China’s largest city, were optimistic as they moved through stations.
I have no concerns regarding the virus. As he prepared to return to his home area of Bazhong in the northeastern province of Sichuan, 37-year-old migrant worker Zhou Ning told Reuters outside the Shanghai Railway Station. “Our immunity is okay because we are young,” he said.
“There are many people who have tested positive back in my hometown, but I am not concerned about it,”
Fellow migrant worker Feng Hongwei, 21, said he was “so happy, so excited” as he started the journey home to Puyang, Henan on a train leaving Shanghai. Since two years ago, I have not seen my parents.
According to industry data reported by Shanghai Securities News on Monday, the holiday season has also sparked a revival in domestic air travel, with more than 70,000 flights across China between January 7 and 13. That amounts to more than 80% of the levels that were observed prior to the pandemic.
International air connections are also getting better. Emirates Airlines became the latest airline to announce that it will begin daily flights to Shanghai and Beijing in March and resume services from its Dubai hub to Shanghai this week.
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