China’s economy sharply contracted in Q1 showing the weakest growth in over forty years in 2020, Gerard Burg, a Senior Economist at the National Bank of Canada reports.
Key quotes
“China’s economy contracted by 6.8% yoy in Q1 2020, the first contraction in quarterly data on record (which commenced in 1992). This is the first time Chinese authorities have reported a negative GDP result since an annual decline in 1976.”
“Following on from the steep plunge in industrial production in the first two months of 2020 (down 13.5% yoy), output declined modestly in March, down by 1.1% yoy.”
“Investment fell by 9.4% yoy, however the decline in producer prices reduced the scale in real terms, with real investment falling by an estimated 7.3% yoy in March.”
“China’s retail sales fell again in March, down by 15.8% yoy, following on from a 20.5% yoy decline during January and February.”
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