China's COVID-19 Testing Costs Reach 33 Trillion in Q2 This Year... "Economic Stimulus Effect"

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Hyunjung] It has been observed that China spent approximately 174.6 billion yuan (about 33.2368 trillion won) on COVID-19 testing in the second quarter of this year.

On the 14th, the Hong Kong South China Morning Post (SCMP) cited estimates from Suzhou Securities, reporting that about 10.8 billion COVID-19 tests were conducted in China from April to June this year.

The total cost reached 174.6 billion yuan, which exceeds the annual gross domestic product (GDP) of some countries such as Iceland and Cambodia.

Such expenditure is expected to raise China's national economic growth rate by 0.62 percentage points in the second quarter. Suzhou Securities also predicted that it would offset the negative impact of reduced household consumption caused by city lockdowns and other measures in China.

In an investment memo, the company emphasized, "Since early June, we have been more optimistic about second-quarter economic growth," citing figures from central authorities and local economic surveys, including more flexible COVID-19 control measures and a rebound in exports in May. They explained, "Another important point is that government consumption increased due to regular mass COVID-19 testing by local governments in the second quarter, which boosted GDP."

Suzhou Securities also estimated that the number of COVID-19 tests would decrease to 3.8 billion in May, 4.6 billion in April, and 2.4 billion in June. Recently, many provinces in China have either lifted or partially eased the obligation to prove negative COVID-19 test results.

This content was produced with the assistance of AI translation services.