The Chinese economy shrank 6.8% yoy in Q1 2020, after a 6% growth in Q4 and compared with market forecasts of a 6.5% decline. It is the first GDP contraction since records began in 1992, reflecting the severe damage caused by the COVID-19 outbreak after the authorities enforced a near two-month-long shutdown of all non-essential business activity. However, China’s long term growth potential will not be affected by the short term fallout of the coronavirus pandemic, the authorities said.