China’s virus-hit economy grows at slowest rate in decades



A worker connects two parts of a steam vat filled with fermented grain in Chengdu, ChinaImage copyright
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A worker connects two parts of a steam vat filled with fermented grain in Chengdu, China

The Chinese economy shrunk at its fastest ever pace in the first quarter of the year, as factories and businesses were forced to close.

The world’s second biggest economy contracted 6.8% according to its official data released on Friday.

The financial toll the coronavirus is having on the Chinese economy will be a huge concern to other countries.

China is an economic powerhouse as a major consumer and producer of goods and services.

Last year, it saw healthy economic growth of 6.4% in the first quarter, a period when it was locked in a trade war with the US.

In the last two decades, China has seen average economic growth of around 9% a year, although experts have regularly questioned the accuracy of its economic data.



BBC News

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