China’s GDP shrinks 6.8% in March quarter
China has reported its first ever quarterly contraction at 6.8%, its slowest pace on record.
The decline comes after almost three months of nationwide lockdown as the country battled the coronavirus, which emerged in December in the central Chinese city of Wuhan and has infected more than 2 million people around the world.
China’s economy has not recorded a contraction since 1992 when the country began publishing quarterly GDP data. In 2019, China already posted its slowest growth in almost 30 years.
Over the last month, Chinese authorities have pushed to get the paralysed economy back up and running with businesses and factories re-opening and policies to help households and companies.
Analysts polled by Reuters estimate China’s yearly growth for 2020 will slow to 2.5% from 6.1% last year, the weakest pace since the last year of the Cultural Revolution.
China has reported more than 3,000 deaths and 80,000 infections from the coronavirus
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Trump defers to governors in guidelines for reopening US amid pandemic
Donald Trump and his coronavirus taskforce have unveiled a set of federal guidelines for reopening the economy, which comprise three phases but ultimately defer to governors on when and how to return their state to normal.
The first phase allows for gradually returning to work while also minimizing non-essential travel. The second phase would allow for gatherings of 50 people and non-essential travel. The third allows for schools and organized youth activities to open up as well as large venues to operate under “physical distancing protocols”. The third phase would also allow bars to reopen but with “diminished standing room occupancy” when possible.
The guidelines were unveiled at the president’s daily coronavirus briefing on Thursday. They represent a dramatic shift from the strict stay-at-home orders currently in place in many states. In unveiling them Trump made clear his eagerness to end the nationwide lockdown and return the American economy to its pre-coronavirus days.