This is not the end of the nightmare. Watch out! wrote economist Iris Pang of ING in a report.
The ruling party has eased some controls and allowed factories and some other businesses to reopen in many areas. But companies and economists say it will be months before activity returns to normal levels.
They say that might be pushed back further because the United States and European governments are imposing travel and other curbs that will depress demand for Chinese exports.
The latest data point to an even deeper contraction this quarter, said Julian Evans-Pritchard of Capital Economics in a report.
The March data are likely to be even worse, said Evans-Pritchard.
The January-February period looks better because it includes the start of January, before anti-virus controls hit, said Evans Pritchard.
Further ahead, the pace of recovery is likely to remain slow, he said. The global spread of the virus will hold back the rebound in exports, even as factories return to normal operation. Investment by private businesses tumbled 26.4 per cent while commercial real estate sales plummeted 39.9 per cent, the National Bureau of Statistics reported.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.