China's Economy Suffers 6.8 Percent Contraction

China's Economy Suffers 6.8 Percent Contraction

In China, where the epidemic that affected the world was the first time, the economy shrank 6.8 percent in the first quarter of the year due to the coronavirus. Looking at the statistics China offers today, gross domestic product (GDP) fell 6.8 percent year on year in the first quarter. This 6.8 rate is seen as the worst situation in China since 1992. The country's economy contracted by 9.8 percent in the first quarter compared to the last quarter of last year. In line with the growth statistics of China, the market expectations of different institutions were around 6 to 9 percent, while some economists predicted the possibility of contraction up to double digits. The country's economy had grown by 6 percent annually in the last quarter of the previous year and 1.5 percent in the quarter. On the other hand, retail sales in China fell 15.8 percent in March and industrial production fell 1.1 percent. In the market, it was estimated that retail sales would decrease by 10 percent and industrial production by 7.3 percent. Analysts highlighted that many factories were closed in China due to coronavirus in the first quarter, and both the supply and demand channels suffered a serious interruption, however, the improvement in industrial production in March compared to February was a good development for stimulating the economy.