. Earth Science News .
TRADE WARS
Virus hands China its first economic contraction in decades
By Beiyi SEOW
Beijing (AFP) April 17, 2020

China's economy contracted for the first time in decades last quarter as drastic measures to contain the coronavirus pandemic brought activity to a standstill, official data showed Friday.

Gross domestic product shrank 6.8 percent in the January-March quarter from the same period a year earlier, according to figures released by the National Bureau of Statistics (NBS).

It was the first negative growth reported by the world's second-largest economy since Beijing began logging quarterly data in the early 1990s.

The figure marks a sharp drop from China's six percent expansion in the fourth quarter of last year, but was slightly better than the 8.2 percent contraction forecast by economists in an AFP poll.

Economists have long harboured doubts about the accuracy of the official Chinese data, however, suspecting that the numbers are massaged for political reasons.

And analysts have warned of tougher times ahead, with weaker external demand for Chinese goods to weigh on growth as key export markets are battered by COVID-19.

"We are now facing rising pressure in the prevention of imported epidemic infections, as well as new difficulties and challenges for resuming work and production," NBS spokesman Mao Shengyong told a press conference.

- Grim picture -

Full-year GDP growth expectations have fallen to 1.7 percent, according to AFP's poll -- the worst annual performance since 1976.

The International Monetary Fund has pegged China's 2020 full-year expansion even lower at 1.2 percent but predicts a strong rebound to 9.2 percent in 2021.

It has also painted a grim picture of the global impact of the COVID-19 outbreak, forecasting the deepest economic contraction since the Great Depression of the 1930s.

Friday's data showed a 1.1 decline in industrial output for March, reflecting lingering damage from factory shutdowns even as travel restrictions in the country were progressively eased and businesses stirred back to life.

Retail sales also plummeted 15.8 percent last month as many consumers stayed home and avoided crowds due to fears of a resurgence in virus cases.

But the urban unemployment rate dropped slightly to 5.9 percent last month, after surging to 6.2 percent in February.

- Underwhelming recovery -

China has set an ambitious target of eradicating extreme poverty and building a "moderately prosperous society" by the end of 2020, but this is increasingly under threat from the pandemic fallout.

"Public records suggest that at least half a million firms were dissolved in the first quarter and more are likely to close shop," said Capital Economics chief Asia economist Mark Williams in a report this week.

Surveys pointed to more layoffs in March, and unemployment will likely remain higher in the coming months, he said.

Some analysts believe the worst has passed for China but still expect a slow recovery.

Williams said depressed demand in foreign markets could reduce Chinese exports -- which account for 15 percent of national GDP -- by as much as half.

The impact on export demand may have shaved 1.8 percentage points off China's real GDP growth in the first quarter, Nomura's chief China economist Lu Ting said earlier.


Related Links
Global Trade News


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only


TRADE WARS
Chinese economy contracts for first time in decades: AFP survey
Beijing (AFP) April 15, 2020
China's economy contracted for the first time in around three decades in the first quarter as the coronavirus crisis brought the country to a standstill, according to an AFP poll of economists. The world's second-largest economy tanked in the first three months of the year as factories closed, consumers were compelled to stay home and the virus spread to other countries. Analysts from 14 institutions expect China's economy to have shrunk 8.2 percent from a year ago in the first quarter - the fi ... read more

Comment using your Disqus, Facebook, Google or Twitter login.



Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

TRADE WARS
Hong Kong starts standing down riot police after budget hike

Under-fire Trump defends coronavirus response

Hong Kong to give big cash handouts as economy reels from virus

Coronavirus outbreak fuels China black market for supplies

TRADE WARS
Supporting small airports using virtual reality

Russian cosmonauts begin 3D bioprinting experiment on ISS

Creating custom light using 2D materials

Raytheon awarded $17 million for dual band radar spares for USS Ford

TRADE WARS
Additions to resource industry underwater robots can boost ocean discoveries

GeoSpectrum Technologies launches game changing LF active VDS deployable by USVs

Lockheed Martin receives $12.3 million to develop underwater drone

Biodiversity hotspots could become first generation of high seas marine protected areas

TRADE WARS
The Arctic may influence Eurasian extreme weather events in just two to three weeks

Canada deploys Arctic Rangers to Inuit villages amid pandemic

Experiments lead to slip law for better forecasts of glacier speed, sea-level rise

How horses can save the permafrost

TRADE WARS
Kenya bans controversial donkey slaughter trade

DR Congo latest victim of locust swarms: experts

Amazonian crop domestication began at least 10,000 years ago

Societal transformations and resilience in Arabia across 12,000 years of climate change

TRADE WARS
Pacific's monster storm destroys tourist resorts in Tonga

Monster cyclone Harold tears through Fiji

Monster Pacific storm lashing Vanuatu; 27 missing in ferry tragedy

New NASA radar looks to monitor volcanoes and earthquakes from space

TRADE WARS
S. Africa's explosive cocktail: coronavirus and AIDS

Anger in Africa over coronavirus 'stigma' in China

Chinese virus medics arrive in Nigeria despite protest

Gabon bans eating of pangolin and bats amid pandemic

TRADE WARS
Long-overlooked arch is key to fuction, evolution of human foot

Analysis reveals prehistoric migration from Africa, Asia, Europe to Mediterranean

The evolution of arthritic knees

Our direct human ancestor Homo erectus is older than we thought









The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.