almost 2 years ago • 1 min
Rising Covid cases in China combined with the country’s zero-Covid strategy mean it’s unlikely to deliver the 5.5% annual economic growth it’s targeting.
But this chart (source: John Hopkins, Haver, abrdn, March 2022) shows it’s happening in other regions too: the BA.2 variant of Omicron has led to rising cases in the UK and Europe.
With high vaccination rates in developed markets, the bar for renewed restrictions is very high, but with tentative evidence that the new Omicron variant is more transmissible than its predecessor, Covid is still a potential major disruptor to the global economy this year.
So keep an eye out for new restrictions: they could drive a resurgence in previous Covid winners but recent stock price performance laggards like Zoom Video Communications and Netflix – both down 40% this year.
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