İrem GÖL -TDO- Chinese economy contracted 6.8% in the first quarter of 2020. This is the first time that country suffered from such a contraction on record. Chinese National Bureau of Statistics reported on Friday that the economic contraction came due to the months-long paralysis of the country because of the lockdown to contain the virus.
Even though in China the lockdown measures are being relaxed, analysts say the country faces difficulties in reviving the growth and stop job losses as the global spread of the virus devastates demand from major trading partners and as local consumption decreases. Statistics bureau spokesman Mao Shengyong said they are expecting the economic performance to be better in the second quarter than in the first.
The retail sales suffered a 15.8% fall and the fixed asset investment dropped 16.1% in the first quarter. Investors and policymakers worldwide are observing the situation in China very closely to see how long it takes China to recover from the economic shock that the virus caused. Many countries are vigilant on China to calculate the impact of the virus in their economies and follow the relaxation of lockdown measures as United States and some other countries are also planning to reopen their economic cautiously.