National News

China’s economy shrinks due to lingering Covid-19 problems – RT Business News

China’s economy slowed in the second quarter of 2021, posting its worst quarterly performance since the start of 2020, when it came to a virtual standstill amid the first outbreak of the Covid-19 pandemic.

According to data released by China’s National Bureau of Statistics (NBS) on Friday, the country’s GDP grew only 0.4% in the three months to June 30, compared to the same period last year. . On a quarterly basis, GDP fell by 2.6%.

For the first half of the year, the economy grew by 2.5%, well below Beijing’s 5.5% target for 2022. The government admitted on Friday that it would be difficult to meet the target. GDP target in the coming months.

There are challenges to meet our expected full-year economic growth target,NBS spokesperson Fu Linghui said at a press briefing. He noted that in addition to the pandemic-related unrest in the country, rising global commodity prices and growing risks of stagflation around the world are also affecting the Chinese economy.

The drop in GDP comes amid China’s strict zero COVID policy due to new virus outbreaks across the country.

Since March, Beijing has imposed lockdowns in dozens of cities, including the financial hub of Shanghai. The measures reduced consumer activity and disrupted supply chains, leading to the closure of most shops, restaurants and factories.

However, authorities began to gradually reopen the economy in early June, with restrictions in several major cities now lifted. As lockdown measures ease, Fu Linghui said authorities expect the economy to rebound in the second half of 2022.

For more stories on economics and finance, visit RT’s business section

You can share this story on social media:


Back to top button