On December 7, China lifted most of its measures against Covid-19, which had allowed its population to be largely protected from the virus since 2020. This draconian policy known as "zero Covid", which has largely isolated the countries in the rest of the world, has dealt a severe blow to the world's second largest economy.

Despite the end of the restrictions, activity is now struggling to restart due to an explosion in the number of patients.

In December, the Purchasing Managers' Index (PMI), a reflection of the health of the industrial world, stood at 47 points against 48 a month earlier, announced the National Bureau of Statistics (BNS).

This performance is below the expectations of analysts polled by Bloomberg (47.8).

A number below 50 indicates a downturn in activity.

The index has not been in positive territory since September.

“The epidemic has had a significant impact on production and business demand, the presence of personnel, logistics and distribution” and therefore activity, said Zhao Qinghe, statistician at the BNS, in a press release.

The official, however, says he is considering “a recovery” of the economy in view of “the gradual improvement in the health situation” in China.

Patients with Covid-19 at a hospital in Tangshan, Hebei province, on December 30, 2022 © Noel Celis / AFP

The country reported on Saturday more than 7,000 new positive cases and one additional death linked to Covid out of a population of 1.4 billion.

These largely understated figures appear to be totally out of step with the reality on the ground.

The so-called “zero Covid” strategy was based on generalized screening tests, strict monitoring of movements but also of confinements and the placement in quarantine of positive people.

These measures, which led to the unexpected closure of factories, disrupted supply chains and forced some companies to close permanently.

For its part, the non-manufacturing PMI, which includes the services and construction sector, also contracted more this month, to 41.6 points, against 46.7 in November.

The government has set a growth target of around 5.5% this year, after an increase of more than 8% in gross domestic product (GDP) in 2021. But many economists now consider this objective unrealistic.

China will reveal its performance for the whole of 2022 in January.

© 2022 AFP