“I put off plans to change cars and spend almost
nothing on eating out or entertainment,” he said. “I
have no idea when the situation will turn better.”
Factories reopened in March after President Xi
Jinping visited Wuhan, the city at the center of
the outbreak, in a sign of confidence the virus
was under control. But the consumers whose
spending propels China’s economic growth are
still afraid of losing their jobs or catching the
virus. They are holding onto their money despite
official efforts to lure them back to shopping
malls and auto showrooms.
Data due out Friday is expected to show the
economy contracted by up to 9% in January-
March, its worst performance since the late 1970s.
That is a blow to automakers and other global
companies that hope China, after leading the
way into a global shutdown, might power a
recovery from the most painful slump since the
Great Depression of the 1930s.
“What is not fully back, or is completely missing, is
the demand,” said Louis Kuijs of Oxford Economics.
In Europe, the first tentative steps at winding
back economically crippling restrictions were
also running into resistance, as shoppers stayed
away from the few stores that were reopening
and some workers feared the newly restored
freedoms could put their health at risk. The
streets of Rome were largely deserted despite
an easing of restrictions this week that allowed
some businesses to reopen.
In China, e-commerce got a boost when families
stuck at home bought groceries and other items
online. But forecasters expect little to no growth
in this year’s total spending on clothing, food
and other consumer goods.
Image: Ng Han Guan