prompted a tightening of restrictions in beijing, here s cbs elizabeth palmer. shanghai s health authorities say more than half the population is no longer under lockdown but you would never know it. in practice most people are still not allowed to leave their compounds. though there has been a big push to get essential workers back on the job. among them agricultural staff on shanghai s outskirts. farmers getting back to their crops is one thing, factory workers is quite another. some of them have gone back to restarted plants but this video shows under a so called closed loop system where workers have to literally sleep on the job. china s lockdowns are causing labor shortages and brocken labor shortages and broken supply lines. and u.s. companies are warning they re likely to cost billions of dollars. that is why the covid outbreak in beijing has caused such alarm.
can t leave the ports, can t leave the airport in shanghai. and these are goods which are ultimately going to europe and the u.s. it s going to push prices up. we re going to see more inflationary pressure. reporter: the zero covid strategy has also forced many factories in shanghai to suspend operations. the apple supplier has suspended production at its shanghai plant. and volkswagen and tesla factories have been shut for weeks. and tesla has resumed in shanghai but the company warned it too is not immune from supply chain problems. authorities in shanghai are trying to get essential production plants open under what they call a closed loop system. that means their staff actually sleep on the premises, on the factory floors, eat there, don t leave them, don t go home. but the problem is there s a lot of staff who don t want to do
and volkswagen and tesla factories have been shut for weeks. production has resumed at tesla with elon musk saying that tesla shanghai is coming back with a vengeance. but the company warned it too is not immune from supply chain problems. authorities in shanghai are trying to get essential production plants open under what they call a closed loop system. that means that their staff actually sleep on the premises, on the factory floors, eat there, don t leave them, don t go home. but the problem is that there is a lot of staff who don t want to do that and there is a shortage of parts to get the factories reopened. so it will be a global problem. reporter: an analyst warns that the economic pain caused by zero covid strategy could spiral under control saying that implementing the strategy in an excessive manner by itself could lead to disruption on the supply chain, mass unemployment, and this could translate into social
trying to get essential production plants open under what they call a closed loop system. that means their staff is actually sleep on the premise. on the factory floor, eats there. don t leave. don t go home. the problem is there s staff that don t want to do that and shortage of parts to get the factories reopened. it s going to be a global problem. analyst warns the economic pain caused by the zoo covid strategy could spiral out of the control. saying this quote implementing this strategy in excessive manner by itself could lead to disruption on the supply chain, mass unemployment, and translate into social political instability. exactly what the zero covid strategy wants to avoid. and yet shanghai weeks long lock down still has no end in sight. bottom line from china watchers to the world, brace yourselves for the fall out.
so we saw yesterday the imf has revised downwards quite dramatically its global growth forecast to 3.6%. it s revised down the growth forecast for the u.s. to 3.7%. china has been revised down as well, and they ve also revised up sharply their inflation forecasts. and we could see worse yet to come because we just simply don t know how long this is going to take. authorities in shanghai are trying to get essential production plants open under what they call a closed loop system. right. that means that their staff actually sleep on the premises, on the factory floors, eat there, don t leave them, don t go home. but the problem is there s a lot of staff who don t want to do that. mm-hmm. and there s a shortage of parts to get these factories reopened. so it s going to be a global problem. yeah, a global problem indeed, and one that we re just really possibly starting to come to terms with. peter lewis, thanks for your