20.1 C
Friday, March 31, 2023

China’s economy shrinks on lingering Covid-19 woes

The country’s GDP plunged 2.6% on a quarterly basis

China’s economy slowed in the second quarter of 2021, recording its worst quarterly performance since the start of 2020, when it was brought to a near standstill amid the first outbreak of the Covid-19 pandemic.

According to data released by China’s National Bureau of Statistics (NBS) on Friday, the country’s GDP grew by a mere 0.4% in the three months to June 30, compared with the same period last year. On a quarterly basis, GDP shrank 2.6%.

For the first half of the year, the economy grew by 2.5%, much less than Beijing’s 5.5% target for 2022. The government admitted on Friday that reaching the GDP goal would be difficult in the coming months.


There are challenges to achieve our expected economic growth target for the whole year,” Fu Linghui, a spokesperson for the NBS, said at a press briefing. He noted that apart from the pandemic troubles at home, higher global commodity prices and growing stagflation risks around the world also affect China’s economy.

Read more

Grand Lisboa Hotel is under lockdown after COVID-19 cases were found there on July 6, 2022 in Macau, China.
World’s largest casino city locked down

The drop in GDP comes amid China’s tough zero-COVID policy due to new outbreaks of the virus across the country.

Since March, Beijing has imposed lockdowns in dozens of cities, including financial hub Shanghai. The measures slashed consumer activity and disrupted supply chains, leading to closures of most shops, restaurants and factories.


However, authorities started gradually reopening the economy at the beginning of June, with restrictions in several major cities now lifted. As lockdown measures ease, Fu Linghui said authorities expect the economy to rebound in the second half of 2022.

For more stories on economy & finance visit RT’s business section

https://ift.tt/luCM9A0 16, 2022 at 12:29PM
from RT – Daily news


Support Us

Secured by Paypal

Related Stories

Check out other tags:

Most Popular Articles