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China's economy shrinks for first time in decades

17 April 2020 10:26 (UTC +04:00)

China's economy shrank for the first time in decades in the first quarter of the year, as the virus forced factories and businesses to close, APA reports citing BBC.

The world's second biggest economy contracted 6.8% according to official data released on Friday.

The financial toll the coronavirus is having on the Chinese economy will be a huge concern to other countries.

China is an economic powerhouse as a major consumer and producer of goods and services.

This is the first time China has seen its economy shrink in the first three months of the year since it started recording quarterly figures in 1992.

"The GDP contraction in January-March will translate into permanent income losses, reflected in bankruptcies across small companies and job losses," said Yue Su at the Economist Intelligence Unit.