A less subdued Lunar New Year

Millions of people traditionally travel across China to spend this evening, the eve of Lunar New Year, with their families. The tradition has been severely disrupted by the pandemic. Last year, amid a flare-up in COVID infections, local governments strongly discouraged people from making the journey. 70% fewer trips were made during the 2021 holiday travel season than before the pandemic. This year, despite a larger COVID outbreak recently, including pockets of Omicron infection, more people have made the journey. Holiday travel so far is 46% higher than in 2021. This is a reflection of how China’s COVID containment efforts have evolved, becoming more targeted and less disruptive, even in the face of Omicron. Travel, and other activities requiring personal contact, remain depressed. But there are at least signs that the economy is becoming a little more resilient to virus outbreaks.