People’s Republic of China: Selected Issues
IMF Staff Country Reports, February 10, 2023
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Bibliographic details
- Published: February 10, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400233517.002
Main findings on COVID-19 strategy and economic impact
- The paper focuses on recalibrating the coronavirus disease (COVID) strategy in the People’s Republic of China.
- Successfully containing outbreaks supported a gradual transition to more targeted and flexible containment measures, refining the overall strategy in line with the evolution of the pandemic.
- In late 2022, the authorities started easing COVID containment policies notwithstanding ongoing spikes in infections.
- Even though the economy bounced back quickly from the 2020 outbreaks, the recovery of private consumption has been lagging—in part as a result of the need for recurring lockdowns and elevated uncertainty.
- Throughout 2022, the emergence of more transmissible variants put the zero-COVID strategy to test and outbreaks have significantly hurt domestic economic activity.
- An immediate withdrawal of all nonpharmaceutical interventions could have severe health consequences, given:
- the relatively lower level of vaccination for the most vulnerable,
- a possible lack of antiviral treatments,
- and still limited medical capacities.
Policy implications and considerations
- Recalibration toward targeted and flexible containment measures is central to aligning the strategy with pandemic evolution.
- Policy trade-offs highlighted:
- Easing containment can support economic activity but may raise health risks if done abruptly.
- Maintaining strict measures reduces transmission but can depress private consumption through recurring lockdowns and elevated uncertainty.
- Health-system preparedness is a critical prerequisite for easing nonpharmaceutical interventions, including:
- higher vaccination coverage among vulnerable populations,
- better availability of antiviral treatments,
- strengthened medical capacity.
Subjects and keywords
- Subjects: Climate finance, Credit, Environment, Greenhouse gas emissions, International organization, Monetary policy, Money, Production, Total factor productivity
- Keywords: Asia and Pacific, C. power market, Climate finance, Credit, E. Policy implication, Global, green finance landscape, Greenhouse gas emissions, market reform, policy initiative, Total factor productivity
Source: People’s Republic of China: Selected Issues (IMF Staff Country Reports 2023, 081).
Content in this bundle
- People’s Republic of China: Selected Issues; IMF Country Report No. 23/81; December 19, 2022