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2022

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How Much Does China's Epidemic Situation and Prevention Policy Affect Consumption?

Source:

In Q3, China's consumption was plagued by the epidemic situation in many places throughout the country. Recently, the epidemic situation throughout the country has gradually stabilized, but the task of dynamic zero around the country is very difficult, which has also affected many domestic consumer markets, and meat trade and consumption have also decreased.

How Much Does China's Epidemic Situation and Prevention Policy Affect Consumption?

 

In Q3, China's consumption was plagued by the epidemic situation in many places throughout the country. Recently, the epidemic situation throughout the country has gradually stabilized, but the task of dynamic zero around the country is very difficult, which has also affected many domestic consumer markets, and meat trade and consumption have also decreased.

 

A number of cities across the country have implemented various degrees of closure and control. Consumption continues to weaken, consumer confidence is insufficient, consumer willingness declines, and residents' precautionary saving willingness continues to rise, reaching a historical peak.

 

In addition, the epidemic situation in some parts of China also affects port operations, such as Ningbo Port, where port operations and picking up of products are affected. According to feedback from Global Supply Chain Department of OIG, there are containers detained in the cold storage today that have taken nucleic acid samples cannot be delivered. Also, at present, the cold storage can only enter but not exit.

 

On the whole, the fundamentals of China's long-term economic growth have not changed, and the characteristics of the consumer market with great potential and strong resilience have not changed.

 

OIG+X believes that as the impact of the epidemic situation is gradually controlled, various policies and measures to promote consumption are put into effect, and consumption is expected to continue to recover in the later period.