China’s retail and industrial activity fell sharply in April as Covid-19 lockdowns confined workers and consumers to their homes and severely affected supply chains, casting a shadow on the outlook for the world’s second-largest economy. .
In March and April, total or partial lockdowns were imposed in the main centers of the country, including Shanghai, hitting production and consumption and increasing risks for those parts of the global economy heavily dependent on China.
Retail sales plunged 11.1% in April from a year earlier, the biggest contraction since March 2020, data from the National Bureau of Statistics showed on Monday, a steeper decline than expected in a survey. from Reuters.
Factory output fell 2.9% from a year earlier, defying expectations for a rise and marking the biggest decline since February 2020 as measures against the virus disrupted supply chains and brought distribution to a standstill.
Analysts now warn that China’s current downturn could be harder to overcome than that seen during the start of the coronavirus pandemic in early 2020, with exports unlikely to pick up and with authorities limited in their stimulus options.
“The bottom line is that, although the worst is over, we believe the Chinese economy will struggle to return to its pre-pandemic trend,” said analysts at Capital Economics.
Investments in fixed assets, which Beijing relies on to support the economy as exports lose momentum, rose 6.8% in the first four months of the year, compared with an expected increase of 7.0%.
Source: CNN Brasil
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