BEIJING, May 16 — China’s economic activity cooled sharply in April as widening Covid-19 lockdowns took a heavy toll on consumption, industrial production and employment, adding to fears the economy could shrink in the second quarter.
Retail sales in April shrank 11.1 per cent from a year earlier, the biggest contraction since March 2020, data from the National Bureau of Statistics showed today. The reading worsened from March’s 3.5 per cent fall and missed the forecasts for a 6.1 per cent drop. As the anti-virus measures snarled supply chains and paralyzed distribution, industrial production fell 2.9 per cent from a year earlier, notably worse than a 5.0 per cent gain in March and was below expectations for 0.4 per cent growth. The reading was the largest decline since February 2020.
What people tend to forget is that China has its own deep pocket to pump up her economy.