China’s economy contracts as Covid lockdowns curb business

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China’s economy contracted sharply in the second quarter, official data showed Friday, highlighting the impact of extended lockdowns in Shanghai and other cities as the country sticks to its tough “zero-Covid” policies.

The world’s second-largest economy shrank 2.6% in the three months ending in June, compared with growth of 1.4 % from January to March. Compared with a year earlier, which can hide recent fluctuations, growth slid to a weak 0.4% from the earlier quarter’s 4.8%.

This spring China faced its biggest coronavirus outbreak since the 2020 start of the pandemic, driven by the highly transmissible omicron variant. Anti-virus controls shut down Shanghai, home to the world’s busiest port, and other industrial centers starting in late March,. Millions of families were confined to their homes, depressing consumer spending.

“The resurgence of the pandemic was effectively contained,” the statistics bureau said in a statement. “The national economy registered a stable recovery.”

 

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