The International Monetary Fund (IMF) called on China. The call is to speed up its coronavirus vaccination program. IMF gives a warning that the sharp slowdown in the pace of new doses administered. As a result, this administration could undermine the recovery in consumer spending in the economy.
At the current rate, providing three doses of Covid vaccines. These doses to the population would take “a matter of years”, Helge Berger said in an interview. Helge Berger is head of the IMF’s mission in China. Given that spending, growth has yet to recover to pre-pandemic rates in part. Households are wary of Covid infections. “An acceleration of the vaccination campaign would support confidence and consumption,” he said.
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About 375 million people over the age of 15 in China have yet to receive three doses of a vaccine. The daily vaccination rate has fallen below 800,000 per day, according to official data. Studies show that three doses of China’s national coronavirus vaccines are effective as mRNA vaccines in preventing serious infections or deaths.
There low rate of full vaccination. It is particularly among older people. It is one of the reasons why China persists with its strict Covid Zero policy that requires limits on activity wherever virus cases occur. Only about 64% of Chinese over the age of 60 have received three doses, according to China’s national health commission.
Berger said blockades in Shanghai and dozens of other cities since March. These Blockades are a key reason the IMF sees “downside risks” to its April forecast of 4.4% gross domestic product growth for China this year.
“The second quarter will be weak given the lockdowns,” he said.
Domestic data has returned to pre-lockdown levels, Berger added that in Shanghai. Measures of economic activity monitored by the IMF have recovered to only around 50%.
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Economists surveyed by Bloomberg predict 4.1% growth in China this year and a possible quarter-on-quarter GDP contraction in the April-June period. That makes it unlikely that the government will meet its full-year target of around 5.5%.
The IMF has consistently called on Beijing to increase financial support to households. Even taking into account the measures announced in April, China’s fiscal stimulus this year is lower relative to 2020, Berger added.
“The known fiscal measures this year remain small relative to 2020, even considering that in 2020 the overall shock was greater than this year,” he said.
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