Official data shows the economy contracted by 2.6 per cent as compared to 1.4 per cent quarter-on-quarter in the January-March period.
Official data shows the economy contracted by 2.6 per cent as compared to the quarter-on-quarter rate of 1.4 per cent in the January-March period.
China’s economy shrank in the three months ending June compared to the previous quarter Shanghai and other cities The shutdown was put in place to fight the coronavirus outbreak, but the government said a “steady recovery” was underway.
The economy shrank 2.6 percent compared to an already weak quarterly rate of 1.4 percent in the January-March period, official data showed Friday, July 15, 2022. Compared to a year ago, which may hide the recent volatility, growth slowed to 0.4 per cent from 4.8 per cent in the previous quarter.
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Shanghai Shutdown
anti-virus control closed shanghai, The site of the world’s busiest port and other manufacturing hubs, set to begin in late March, could be disrupted by concerns over global trade and manufacturing. Consumer spending dismal, millions of families confined to their homes.
Factories and offices were allowed to reopen in May, but economists say it will take weeks or months for activity to return to normal. Economists and business groups say China’s trading partners will feel the effects of shipping disruptions in the next few months.
“The resurgence of the pandemic was effectively contained,” the Bureau of Statistics said in a statement. “The national economy recorded a steady recovery.” The ruling Communist Party is promising tax refunds, free rent and other aid to companies to get back on their feet, but most forecasters expect China to fail to meet the ruling party’s 5.5 percent growth target this year.
Growth for the first half of the year stood at 2.5 per cent from a year ago, one of the weakest levels in the past three decades.
Retail sales in the first half were down 0.7 per cent from a year ago, after falling 11 per cent in April.
Investment in factories, real estate and other fixed assets climbed 6.1 per cent, reflecting the ruling party’s effort to stimulate growth by increasing spending on construction of public works and ordering state-owned companies to spend more.