China: First annual contraction in decades – ABN Amro

GDP figures showed that the Chinese economy contracted for the first time since China started publishing quarterly figures in 1992, per ABN Amro.

Key quotes

“Real GDP contracted by 6.8% YoY, and that was even more than consensus expectations including ours. On a quarterly basis, the economy shrank by 9.8% in Q1.”

“We still expect the Chinese economy to show a rebound in the second quarter as the economy gradually normalises, but the strength of that recovery will be constrained by the collapse in global growth and trade that will hit China’s exports and related industrial activity. All in all, downside risks to our 2020 annual growth forecast of 3.0% have risen.”