China's economic activity slows amid 'zero-COVID' policy
ASİA

China's economic activity slows amid 'zero-COVID' policy

April data for industrial output, retail sales decrease worse than market forecast

News Service AA

China's economic activity slowed down in April due to ongoing disruptions caused by its "zero-COVID" strategy, official data showed on Monday.

Industrial output contracted 2.9% year-over-year in April, according to the Chinese National Bureau of Statistics.

The figure was much worse than a market forecast of a 0.4% expansion for the month.

The added value of the mining industry jumped 9.5% on an annual basis in April. The manufacturing industry shrunk by 4.6% and the electricity, heat, gas, and water production rose by 1.5%.

China's retail sales were 11.1% in April from a year ago versus a 6.1% decrease expected in the market. This has been the largest decline since March 2020, when the figure dove 15.8% annually.

It added that the retail sales excluding automobiles were down 8.4% from the same month of last year, while auto sales sank 31.6% in April.

The "zero-COVID" policy aims to suppress coronavirus infections where they occur and cut the chain of transmission, requires strict and large-scale measures such as quarantine, travel restrictions, and mass testing.

Production in factories was suspended in several cities such as Changchun, Shenzhen, and Shanghai.

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