Chinese economy may tumble to 1992 low!
China’s economy could soon see its first quarterly decline since 1992 due to the ongoing coronavirus pandemic, reported Caixin. Several financial institutions have lowered their forecasts of China’s GDP performance after the National Bureau of Statistics (NBS) released data showing major economic indicators, including infrastructure investment, factory output and retail sales, plunged by double-digit percentages in the first two months of this year.
Goldman Sachs (Asia) revised down its projection for China’s first-quarter GDP to a year-on-year contraction of 9% from a previous estimate of 2.5% growth, according to a Tuesday research note. Standard Chartered Bank wrote in a Monday note that it had lowered its estimate to a 4.2% year-on-year decline from 2.8% growth.
Wang Tao, an economist of UBS Group AG, wrote in a Caixin column on Wednesday that she had lowered her first-quarter GDP forecast to a 5% decline and full-year estimate to 1.5% growth. Morgan Stanley forecasted China’s economy will contract 5% year-on-year in the first quarter before rebounding into expansionary territory in the second quarter in a report.
Till the moment China reported, Zero new domestic coronavirus cases in China for the first time since the epidemic began! Mainland China has reported zero new domestic infections of coronavirus for the first time since the outbreak began, reported the South China Morning Post.
The National Health Commission said it was also the first time Hubei province – where the disease first merged – recorded no new cases either domestically or from abroad. Nationwide, there were 34 new infections, all of them from overseas.
The number of new deaths was down to single digits, with eight reported, bringing the total death toll to 3,245. The commission said 23 new suspected cases had been reported, with the total number of infections now standing at 80,928. A total of 70,420 patients have recovered.