The economy of China, the second largest in the world, shrank by 2.6 percent in the past quarter compared to the previous quarter. Compared to a year earlier, there was a small growth of 0.4 percent. That is exceptional for the country, where growth rates of 6 or 7 percent are quite normal.
The reason for the disappointing figures is the strict lockdown measures that the Chinese government has introduced to curb corona outbreaks.
For example, Shanghai was almost completely locked earlier this year, when a few corona cases were identified there. In that city, the economy even shrank by 13.7 percent in the second quarter compared to a year earlier. Figures published on Friday show that the economy rebounded somewhat in June.
Analysts doubt whether the economy will grow fast again, because the Chinese government still applies its strict corona policy, with hard lockdowns as soon as there are sources of contamination.
In addition, there is the threat of a global recession and there is a shaky real estate market in the country, as witnessed by the problems at real estate giant Evergrande, among others.
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