China’s economy gets a major blow as the nation reported a 6.8% contraction in January-March year-over-year in its official data this Friday. The Q1 decline in China’s gross domestic product (GDP) is the first of a kind for the nation since 1992, as the government took measures to contain the coronavirus in January.
As per the National Bureau of Statistics (NBS) of the country, China’s GDP stands at around 20.65 trillion yuan.
This major contraction gives a glimpse of the full impact of shutdowns rippling across the global economy in the coming months. China was one of the major contributors, helping kick-start the world economy after the 2008 financial crisis, and with almost staggering economic conditions now, the nation is now grappling with unemployment, consumption, and production problems, shrinking retail and industrial sectors, among others.
With over 82,000 positive cases in China, even as the domestic virus is improving, the overseas markets are locking down, hampering the supply of raw materials and intermediate components.
One of China’s National Bureau of Statistics’ spokespersons, Mao Shengyong said that the officials would unveil some policy measures if needed, in order to bolster the domestic demand. Further, the State Council orders more initiatives to stabilize trade with more cross-border e-commerce zones and online trading.