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China's GDP declines first time since 1992 due to coronavirus

Source : 112 Ukraine

The country's economic growth is expected to drop to 2.5% in 2020
17:28, 17 April 2020

112 Agency

Due to the coronavirus pandemic, China’s GDP fell for the first time since 1992. The fall rate made 6.8%, while the analysts predicted the decrease of 6.5%, as Reuters writes.

The National Bureau of Statistics reported that, on a quarterly basis, GDP for the first three months of the year fell by 9.8%, slightly lower than the expected decline of 9.9% compared with a 1.5% increase in the previous quarter.

Nevertheless, analysts say that Beijing has faced a difficult struggle to restore growth and stop the massive loss of jobs, as the global spread of the virus destroys demand from major trading partners and reduces local consumption.

Related: Number of Covid-19 cases in Europe almost reached 1 million

The volume of industrial production fell by 1.1% than it was predicted in March compared with the previous year. Retail sales decreased by 15.8%, which was higher than expected. Investments in fixed assets fell by 16.1% in January - March compared with the previous year.

The Statistical Bureau of China expects that the results of the second quarter will be much better, but they are still worried about the fall in domestic consumption, which was the main growth factor, because economies of the rest of the world are falling into recession.

The revenues adjusted for inflation after the epidemic in China fell 3.9% per capita compared with what it was a year ago. The Chinese authorities promise to take a number of political steps to maintain the country's economy.

In 2020, China’s economic growth is expected to drop to 2.5%, which is its slowest annual rate in almost half a century.

As we reported before, the analytics of the International Monetary Fund (IMF) predicts the global fallout in 2020 for three percent due to the coronavirus pandemic.

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