China’s reopening offers “useful lessons” for other economies: expert

050620203

New York: China’s reopening following the COVID-19 outbreak offers some “useful lessons” for other economies, an economist from Goldman Sachs told U.S. media.

“China started lifting lockdown measures on Wuhan last month when new cases were still surging in many countries. But China’s experience so far showed that a full economic recovery will take time,” said Andrew Tilton, chief Asia economist at the world leading investment banking company, in an interview with CNBC.

“I think the industrial sector probably comes back before the services side,” he said. “But others, such as those in the tourism sector, may take longer to restart activity.”

In China, policymakers appeared cautious about allowing businesses such as movie theaters and gyms to reopen, Tilton noted.

“That means there’s still some way to go before the country returns to a situation that’s close to ‘normal’,” said the economist. “In other countries, that would not happen until 2021.”

Over the past few weeks, several countries started to ease restrictions imposed amid the pandemic, which include closing borders and suspending non-essential businesses, in a bid to boost economy. However, health experts have warned that rolling back those measures too quickly might lead to a surge in COVID-19 cases.