- The coronavirus has sunk the latest macroeconomic data from industry, trade and investment in China, which was released on Monday.
- Thus, industrial production has plummeted 13.5% in January and February, which is the first month-on-month drop in its history.
- In the same period of time, retail sales and investment in fixed assets have also suffered the first decreases compared to the previous months since the beginning of the historical series, with decreases of 20.5% and 24.5%, respectively .
- The unemployment rate has risen to 6.2% in February, also its record high, which means that some 5 million Chinese have lost their jobs due to the impact of the coronavirus.
- The People’s Bank of China announced this past Sunday that it will use all kinds of measures to lower credit for companies that have been affected by the coronavirus outbreak.
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In the past month, the Chinese economy has faced the brunt of the economic impact of the coronavirus. Your industrial, commercial and investment activity and your employment data have decreased for the first time since records exist about it, due to preventive closure of factories and shops and the fall in consumption, which is causing a collapse of the second largest economy in the world.
This is revealed by the latest macroeconomic data that has been published in China in the last hours and that, due to the impact of the coronavirus, have been presented adding the figures for January and February, instead of reflecting each month separately as usual, given that it has been in the first 2 months of 2020 when most The negative effect of the pandemic has been noted.
Specific, Chinese industrial production has plummeted 13.5% in January and February. This data, which includes both manufacturing and mining and public services, thus records the first month-on-month drop in its recent history, in addition to falling more than 10 points more than analysts’ estimates, according South China Morning Post.
In the same way, retail sales fell 20.5% in the first 2 months of the year in the Asian giant in its first negative data since records are kept. Analysts estimated that the first reduction in commercial turnover would reach 4%, according Bloomberg, but the final figure is 5 times higher than your forecasts.
While, investment in fixed assets, which includes spending on infrastructure, real estate resources, machinery and equipment, It has also registered the first fall in its history, decreasing by 24.5% in January and February and multiplying by 12 the experts’ predictions, which predicted a drop of 2%, according to South China Morning Post.
This fall in industrial, commercial and investment activity has already been reflected in Chinas unemployment data, which has increased in February to 6.2%, 0.9% more than in January and 1% more than in the month of December, when the first cases of the coronavirus were known. This figure assumes that around some 5 million Chinese workers have lost their jobs in January and February due to the impact of the pandemic, according chain CNBC.
To alleviate these adverse effects of the pandemic, The People’s Bank of China has announced this past Sunday that it will use all kinds of measures to reduce credit for companies that have been affected by the coronavirus outbreak. 2 days earlier, it had already announced the reduction of the cash reserve requirements that commercial banks treasure in the central bank, although has not changed interest rates, like other central banks.