The Chinese economy has grown at the slowest rate since the coronavirus pandemic began this spring, significantly mitigating the impact of the Covid-19 policy, which continues to promote widespread lockdown and mass quarantine, and some business activities. I stopped it.
The National Bureau of Statistics reported on Friday that the economy had expanded 0.4% year-on-year in the second quarter. This was the slowest growth pace since the first three months of 2020, when China effectively shut down to fight the coronavirus. The economy has shrunk for the first time in 28 years.
The recession in 2020 was short-lived.
The world has addressed the catastrophic effects of a pandemic, but the Chinese economy has recovered almost immediately with the help of viral regulations that minimize infections and deaths. But the current outlook is not very promising. Even historically credible indicators such as real estate and manufacturing are much less reliable.
Recent economic malaise struck in April and May, when China’s largest city, Shanghai, was closed for nearly two months and its effects spread throughout the economy. The office building was closed and the workers were ordered to stay at home. Throughout China, hundreds of millions of consumers have been trapped and stores, restaurants and service providers have been able to continue without customers.
Delays at the world’s busiest port of Shanghai have disrupted an already crowded supply chain. Some factories that managed to stay open did so by putting workers to live and sleep in the field to prevent further spread of the virus.
According to the government, retail sales, which indicate consumer spending, fell 4.6% year-on-year in the three months to June.
This is a developing story. Please check for updates.
