Rolling coverage of the latest economic and financial news
- Latest: Economists: Economic imbalances are worsening
- China’s GDP grew by 6.5% y/y in the fourth quarter, up from 4.9%
- Economy expanded by 2.3% last year – weakest in decades
- Factory growth up 7.3%, but retail sales slow to +4.6%
Anxiety over tightening Covid-19 lockdowns are weighing on investors today, reports David Madden of CMC Markets:
The British government has closed the air corridors, so passengers arriving from outside the UK will need to show proof of a negative Covid-19 test as well as self-isolating once they arrive in the country. Last week, Portugal implemented harsher restrictions, France introduced a curfew from 6pm and it was reported the Berlin administration is also contemplating a curfew. China’s localised lockdowns are increasing too. Tighter restrictions should lead to even worse economic pain that is being inflicted by the lockdowns.
Dr Michael Ryan, the WHO emergencies chief, cautioned the coronavirus will claim 100,000 lives per week ‘very soon’. Governments won’t want to be presiding over such numbers so it is likely that things will get worse before they get better on the lockdown front. The timing of the update from Dr Ryan is bad, as the distribution of the vaccine will be slowed down due to supply constraints.
