Currently, the pandemic situation is not only impacting on the health of people across the country, but also it’s weakening the overall economy. A recent report from the Labor Department shows that more than 22 million filed for unemployment, and the government is paying grants to them. The coronavirus outbreak has bent down the world’s two largest economies in the world, namely the USA and China. China recently said that their whole economy has shrunk by 6.8%, which is the worst thing that has happened since the tumult of Mao’s cultural revolution.
Experts think Chinese people might be waiting for the country’s reporting of the economy, but whether they would spend their cash or not is the biggest question. China’s whole 14 trillion dollars economy is still one of the largest economies in the world, which got a significant bit because of the coronavirus outbreak. China is trying to get back on the tracks by repoing its major markets, but the damage has already been done not only to them but to other countries also. China’s primary economy is dependent upon more export sectors, which currently are in far worse condition than anyone’s expectations. Big countries like the USA, Japan are already telling their domestic companies to shift back to their own country since the pandemic situation has cost them more money than China itself.
Even though China reported a significant downfall for this year’s quarter but experts predict this is just the beginning of the worst phase. Xi’s model of growing based on the export-oriented sector right now is going through one of its worst conditions, and things will be getting harder for upcoming quarters. Still, the Chinese government is trying best to recover the loss suffered by them during this pandemic situation, and some believe it can be done only if private sectors are allowed to grow in a healthy and diversified environment.