A power crunch and record heatwaves in China have disrupted factories, offices, farmlands, and many of the cities’ essential functions. Some subway stations are reportedly dimmed, with little to no lighting.
Dan Wang, chief economist of Hang Seng Bank (China) told CNBC that the power crisis and droughts would likely cause China’s GDP growth to fall below 3 percent, lower than the already reduced projection.
Since mid-July, China has been experiencing the most severe heatwave recorded since 1961, causing its electricity load to spike in order to meet air-conditioning demands. Rivers have dried up in the extreme weather, which has lasted more than 70 days. The southwestern province of Sichuan, which relies heavily on hydroelectricity and is China’s biggest hydropower producer, has fallen into a power and water crisis, with locals describing it as “worse than the pandemic.”…