China's economy shrinks sharply in Q2

China's economic growth slowed sharply in the second quarter, expanding 0.4% year-on-year and missing expectations, official data showed on Friday, as widespread lockdowns to curb record COVID cases hit industrial activity and consumer spending.

Gross domestic product (GDP) had been forecast to expand 1.0% in the April-June quarter from a year earlier, according to a Reuters poll of analysts, slowing significantly from 4.8% in the first quarter.

GDP grew 2.5% for the first half of the year, official data showed. On a quarter-on-quarter basis, however, GDP fell 2.6% in the second quarter, compared with expectations for a 1.5% decline and a revised 1.4% gain in the previous quarter.

"In the first half of the year, economic growth was affected to some extent by the complex and severe international environment as well as the impact of the domestic Covid-19 epidemic," Fu Linghui, spokesperson for China's bureau of national statistics, said during a news conference.

Full or partial lockdowns were imposed in major centres across the country in March and April, including the commercial capital Shanghai.-reuters