China’s economy tanks

The China Project illustration by Derek Zheng

The Chinese economy came to a halt in January and February, new data has confirmed. Industry, retail sales, and fixed investment were all dealt heavy blows. Despite China’s dismal Q1 forecasts, Chinese state media have kept the focus on the possibility of a U.S. recession.

Protests have broken out in numerous Chinese cities over inflated food prices, living costs, and job security, with some residents defying lockdown orders to take to the streets.

What of the rest of the year? According to Bloomberg (porous paywall):

The economy will grow 2.9% this year, according to the median of 17 forecasts over the last week. That is the lowest since a contraction in 1976 — the final year of the Cultural Revolution, which wrecked the economy and society, and the year Máo Zédōng 毛泽东 died.

The median of those new forecasts is for the economy to shrink 6% in the first quarter from the same period a year ago.