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Residents of China are increasingly on the move after the country’s sudden reversal last month of heavy COVID-19 curbs, despite a surge in infections, pointing to a gradual recovery in consumption and economic activity this year.
Mobility and spending data — from subway passenger traffic in three of China’s biggest cities to flight volumes to box office collections — show upticks since late December, after Beijing abruptly ended three years of “zero-COVID” policy earlier in the month.
Still, some indicators show activity has not fully recovered to levels of just a few months ago, and many economists remain cautious about the pace of revival following the faster-than-expected reopening.
“The pullback in retail spending has been increasingly broad-based, suggesting that it will take time to reverse the negative psychological impact on Chinese consumers brought on by three years of episodic lockdowns,” said Louise Loo, senior economist at Oxford Economics.
