China’s economy shrinks 2.6% during virus shutdowns

By JOE McDONALD
AP Business Writer

BEIJING (AP) — China’s economy contracted in the three months ending in June compared with the previous quarter after Shanghai and other cities were shut down to fight coronavirus outbreaks, but the government said a “stable recovery” is under way. Official data show the economy shrank by 2.6%, compared with the January-March period’s already weak quarter-on-quarter rate of 1.4%. Compared with a year earlier, which can hide recent fluctuations, growth slid to a weak 0.4% from the earlier quarter’s 4.8%. Anti-virus controls shut down Shanghai, site of the world’s busiest port, and other manufacturing centers starting in late March, fueling concerns global trade and manufacturing might be disrupted. Millions of families were confined to their homes, depressing consumer spending.