Omicron destroys China’s hopes that the Olympics grow its economy | Business and Economy

The Winter Olympics in China could be a major boost to Beijing’s regional economy rather than rising, as the rise of viruses and pollution has plagued consumers and industries.

A ban on spectators means that there will be no permanent rise in tourism and food that the city hopes to achieve by hosting international sports. Strong control for the spread of two viruses prevents holidaymakers from traveling. And restrictions on industrial pollution by ensuring that there is a white sky above the capital during the game means that metals are reducing emissions.

“Winter Olympics have affected industry and construction in the first phase,” said Lu Ting, an economist at Nomura Holdings Inc.

Beijing is battling an increase in coronavirus infections, which have risen to 96 since mid-January. It is the last thing the rulers want in meeting global events, especially with his idea of ​​keeping the Covid Zero approach.

The plague prompted officials to refrain from selling Olympic tickets to the general public but to allow other spectators invited to watch the games. On the other hand, athletes and crews will be traveling within a wide range of walks, accommodations and spaces.

The Games, which are held together in Beijing and the neighboring city of Zhangjiakou in Hebei province, will run from February 4 to 20. The Winter Paralympics will follow from March 3 to 13.

To address a recent problem, the city has introduced anti-virus measures, such as the need for people who buy anti-malarial drugs to test Covid and increase testing for those who travel.

Eric Zhu, a Chinese economist at Bloomberg Economics, said Beijing should keep restrictions in place in the first phase, due to the Winter Paralympics and the international legal issues set up in March. This will continue to disrupt sections of tourism that are already struggling with employment, the report said.

In addition, cities around Beijing have banned the extraction of factories like metals, in order to improve air quality in the capital. This is when the Ministry of Environment and Natural Resources expanded its annual winter air-conditioning campaign to more than 60 cities this year from 28 cities in the past.

‘Minority industrial disruption’

Each of these cities, from the eastern part of Shandong to the central part of Shanxi, has targets that are bound to meet the subdivisions of PM2.5 in the atmosphere and the number of clear days.

“I expect a bit of disruption in manufacturing since the closure of the factory before the Winter Olympics, but the potential impact on growth could be temporary and short-lived,” said Liu Peiqian, a Chinese economist at NatWest Group Plc.

Good game results can be seen over time. It could help China achieve its goal of making the sport a 5 trillion business ($ 786 billion) by 2025, an increase of 70% from the 2019 ranks. some winter fun.

“Like the Tokyo Summer Games, the global game time is shorter due to the epidemic,” said Raymond Yeung, an economist at Greater China at Australia & New Zealand Banking Group Ltd. launch a ‘white economy’ meaning more and more people will love winter sports in this country. That is the long-term benefit of the economy. ”

China estimated in 2014 that the Winter Olympics and Paralympics would spend $ 1.56 billion on spending, according to a report by the International Olympic Committee. The city raised $ 1.51 billion, while 65% was funded by government agencies and 35% by various governments.

The money is expected to bring long-term benefits to the region. Ticket prices said at that time it had reached $ 118 million, which cannot be repaid now.

The economic downturn in the game may be temporary and may not affect China’s growth in the first half, Nomura’s Lu said.

“That tragedy will not affect the number of people who drink at this time because of the epidemic,” he said. “Overall, there are some short-term challenges, but not the worst that happens in the first half and throughout the year.”