The outbreak of the global Coronavirus pandemic has affected China’s economy deeply. It contracted for the first time since the cultural revolution in 1976 and after the shutdown is now facing unprecedented impact.
Economists were already concerned about risks in China’s financial sector before the corona crisis hit. The government’s virus containment efforts brought economic activity to a standstill. Major challenges remain for China, now that the virus has spread to the rest of the world. This exacerbates an already serious situation, as global consumption decreases, key sectors like China’s exports sector will struggle to get back on its feet. Around the globe, economies are in need of some relief. But despite signs of economic recovery in March, China’s economy is far from serving as an engine for growth during this global economic crisis.
In this web seminar, MERICS Chief Economist Max J. Zenglein and Analyst Maximilian Kärnfelt presented findings from the latest MERICS Economic Indicators, a project that monitors China’s economy. Their analysis was followed by a short comment from Dr. Alicia García-Herrero, Chief economist for the Asia Pacific at NATIXIS, and a brief Q&A round.