China’s economy contracts for first time in decades – The National

  • Date: 18-Apr-2020
  • Source: The National
  • Sector:Economy
  • Country:Middle East
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China’s economy contracts for first time in decades – The National

China's economy contracts for first time in decades. Coronavirus pushed China's economy into its first contraction in decades in the first quarter, as weak consumer spending and production point to a long, hard recovery.. The world's second-largest economy shrank 6.8 per cent from a year ago in the three months ending in March after factories, shops and travel were closed to contain the infection, official data showed Friday.. China's economy hasn't contracted on a full-year basis since the end of the Mao era in the 1970s.. Retail sales slid 15.8 per cent in March as consumers remained wary, while investment decreased 16.1 per cent in the first three months of the year.. A brighter sign was the smaller-than-expected contraction in March industrial production of 1.1 per cent as factories returned to work amid easing lockdowns.. Both retailing and factory output showed improvement from their lowest points in the first two months, suggesting a stabilisation in economic activity.. The economy remained shuttered for much of February with factories and shops closed and workers stranded at home.. Growth in the second quarter will be shallow, just marginally above zero.". On the positive side, the surveyed jobless rate actually declined in March, to