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China's economy seen growing slowest since 1990 due to virus

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The outbreak of the coronavirus and China's efforts to stop its spread mean the economy will grow slower this quarter than first thought, with the median forecast now for growth to be the weakest in 30 years.

[BEIJING] The outbreak of the coronavirus and China's efforts to stop its spread mean the economy will grow slower this quarter than first thought, with the median forecast now for growth to be the weakest in 30 years.

China's gross domestic product will grow 4 per cent in the first quarter, according to the median of 18 forecasts from Jan 31 or later. That's down from 5.9 per cent in the last survey on Jan 22 and the lowest level since 1990. Full-year economic growth is forecast to be about 5.5 per cent, also down from 5.9 per cent last month.

Nomura Holdings Inc, UBS Group AG and Macquarie Group Ltd are among those cutting their forecast for both the first quarter and the full year.

The lowest forecast is from Goldman Sachs Group Inc, which now expect the economy to grow 2.5 per cent this quarter from a year ago, and warn that the economic picture will remain uncertain in coming weeks as the recent holiday means there's a lack of up-to-date economic data.

BLOOMBERG