How Covid-19 lockdowns have impacted the Chinese economy

The pandemic remains a threat to the Chinese economy, with Q2 2022 seeing significant economic contraction. After activity increasing throughout Q2, as restrictions eased, this growth was soon halted by new wave of restrictions, undermining the initial progress of the second quarter. The outlook for manufactured exports, which has proved a key growth driver in last two years, is beginning to look uncertain. Schroders assesses the position of the Chinese economy and explores reasons for current downfalls.