China's economy shrank for the first time in decades in the first quarter of the year

China's economy shrank for the first time in decades in the first quarter of the year, as the virus forced factories and businesses to close.

The world's second-biggest economy contracted 6.8% according to official data.

The financial toll the coronavirus is having on the Chinese economy will be a huge concern to other countries.

China is an economic powerhouse as a major consumer and producer of goods and services.

This is the first time China has seen its economy shrink in the first three months of the year since it started recording quarterly figures in 1992.

Yue Su at the Economist Intelligence Unit says the GDP contraction in January-March will translate into permanent income losses, reflected in bankruptcies across small companies and job losses.

Last year, China saw healthy economic growth of 6.4% in the first quarter, a period when it was locked in a trade war with the US.

In the last two decades, China has seen average economic growth of around 9% a year, although experts have regularly questioned the accuracy of its economic data.

[Source: BBC]