China GDP first quarter coronavirus epidemic

China GDP first quarter

China’s GDP in the first quarter fell to a minimum since 1992 due to the coronavirus epidemic

China GDP first quarter

MOSCOW – Chinese GDP collapsed in the first quarter of 2020 by 6.8% in annual terms – this is the first decline in the PRC economy since the publication of quarterly GDP data by the State Statistical Office (GSO) in 1992, Interfax reports.

The sharp recession reflects the severe damage caused to the Chinese economy by the outbreak of coronavirus infection COVID-19 and restrictions imposed by the country’s authorities to curb its spread. China GDP first quarter

Now the Chinese government needs to take measures to support the economy in conditions of increased unemployment and social instability, while trying to keep the debt burden and financial risks under control, experts say.

In the fourth quarter of 2019, the PRC economy grew by 6% in annual terms. The experts consensus forecast provided for a 6.5% drop in Chinese GDP in the first quarter, according to Trading Economics.

The drop in GDP relative to the fourth quarter in January-March amounted to 9.8%, while analysts expected a decrease of 9.9%. The decline in GDP in quarterly terms was also recorded for the first time. In October-December, the PRC economy grew by 1.5% compared to the previous quarter. China GDP first quarter

The sharp economic downturn in China suggests what other states will face in the context of the coronavirus pandemic, which has already led to the closure of borders, a halt in business activity and the severing of global supply chains, writes The Wall Street Journal.

Recent statistical data suggest that the Chinese economy began to recover in March after a sharp decline in the first two months of this year. China GDP first quarter

Thus, unemployment among the urban population, which reached a record 6.2% in February, fell slightly at the end of March – to 5.9%. Unemployment, however, is still high, given that in recent years this figure has been holding at around 5%.

The volume of industrial production in China in March decreased by 1.1% in annual terms after a collapse of 13.5% in January-February. The consensus forecast of the experts suggested a drop of 7.3%. China GDP first quarter

Production in the processing industry last month decreased by 1.8% after falling by 15.7% in January-February.

Meanwhile, the production of cars and auto components in March fell by 22.4%, industrial equipment – by 5.4%. Food production increased by 5.7%.

The rate of decline in retail sales in China in March slowed down to 15.8% (forecast – 10%) compared with a collapse of 20.5% in January-February. People are still afraid of crowded places, including shopping centers, restaurants and movie theaters, so it will take time to restore retail sales, economists say. China GDP first quarter

Earlier it was reported that the International Monetary Fund (IMF) predicts a decline in the Russian economy in 2020 by 5.5%, the world economy, according to him, will fall by 3%.

Author: Anna Larionova

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