The most affected regions account for 16.7% of national GDP, according to Citi estimates.
"Economic loss may be real this time," the analysts said. "Jointly considering the spillover effect to other regions, we think the lockdown and tightened quarantine measures this round could potentially deduct ~0.5-0.8 ppt of GDP growth in Q1, assuming no policy responses."
Mainland China reported 1,860 confirmed Covid cases for Tuesday, down from more than 3,500 new cases a day earlier. The country has not reported new deaths, and the number of new cases is still far lower than in other parts of the world, such as Europe.