- COVID-19 Shrinks Chinese Economy by Most in Half a Century
COVID-19 has brought to an end decades of growth in the world’s second-largest economy, according to Chinese officials on Friday.
Chinese economy contracted by 6.8 percent in the first quarter ended March 2020 when compared with a year ago, ending a streak of growth that survived the Tiananmen Square crackdown, the SARS epidemic and even the global financial crisis.
Also, the nation’s industrial production slipped by 1.1 percent in March while retail sales declined by 15.8 percent when compared to the same period of last year. Fixed investment assets plunged 16.1 percent during the first three months of the years as investors held on to their case amidst fast-spreading COVID-19 and rising global uncertainties.
“Given the continuous spread of the epidemic globally, mounting downward pressure on the world economy and growing uncertainties, we are now facing heightened pressures,” said Mao Shengyong, the spokesman of the National Bureau of Statistics, at a news briefing in Beijing on Friday morning.
“China may have seen the Covid-19 outbreak first and local closures slowed the economy, but now China appears to be feeling the brunt of the slowing global economy,” said Jeremy Fand, the chief executive, SpaceKnow Inc.
According to Mr. He of Touchroad, despite Chinese business resuming operations, sales will continue to drag.
“One cause for optimism is that work resumption, and getting back into production, have been going well in China,” he said. But he added, “It’s going to be a big impact for the world economy, and some companies will not make it.”