World economy braces for supply hit as China battles Covid-19 again

As manufacturer to the world, any disruptions to exports resulting in shortages could also drive up inflation internationally, just as central banks begin hiking interest rates, like the Federal Reserve is expected to do today.

BEIJING: The global economy, already struggling with war in Ukraine and the stagflation risks it’s fanning, is bracing for greater disruption as China scrambles to contain its worst outbreak of Covid-19 since the pandemic began.

Since Wuhan two years ago, China has had relative success in minimising disruption by bringing virus cases quickly under control.