Ripple effects from China’s latest COVID-19 outbreaks expected into June, July

Over the past several weeks, restrictions aimed at stopping the spread of COVID-19 have seen Shanghai’s industrial output and retail sales plummet, while supply chain ripple effects are expected to continue into June or July. 

Case counts are declining in Shanghai and Kunshan (administration of the prefecture Suzhou), a high-tech manufacturing hub, but both cities remain under lockdown. The government has lifted most quarantine controls across the rest of country and plans to further loosen restrictions in Hong Kong by the end of May. However, COVID-19 cases continue to arise in Beijing, raising the potential for new restrictions.

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