Urban investment and retail sales also fell sharply and for the first time on record, reinforcing views that the epidemic may have cut China's economic growth in half in the first quarter. Fixed asset investment fell 24.5% year-on-year, compared with 2.8% predicted by analysts and 5.4% growth in the prior period. Chinese officials said last week that the peak of the epidemic had passed, but analysts warn it could take months before the economy returns to normal. Prior to a significant deterioration in the virus, analysts had predicted a rapid V-shaped recovery for China's economy, similar to that seen after the SARS epidemic in 2003-2004. Citing the twin blow from both supply and demand shocks, analysts polled by Reuters expect China's first-quarter economic growth could be cut nearly in half to 3.5% year-on-year from 6% in the previous quarter.

Source: bd News24 March 16, 2020 02:26 UTC