Chinese Economy Contracted in Q1 2020 for the First Time on Record

China’s real GDP contracted sharply by 6.8% y/y in Q1 2020 for the first time on record, due to the marked negative impact of the COVID-19 outbreak on domestic economic activity and global demand.

The sharp economic downturn was particularly reflected in four key economic indicators, namely retail sales, fixed investment, industrial output and car sales.

However, economic activity seems set to recover from Q2 2020 onwards, albeit very gradually, as a result of fiscal and monetary measures undertaken in Q1 2020 to counter the economic impact of COVID-19.

The CEIC Leading Indicator improved to 85.8 in March 2020 after a two-year low of 61.3 in February.

Sign in and access detailed data and analysis on China’s economy in the CEIC China Economy in a Snapshot – Q2 2020