The profits of industrial enterprises in China fell at the fastest rate in 10 years

Industrial enterprises of China in January-February has recorded a sharp decline in profits since the outbreak of coronavirus caused severe damage to the second largest economy in the world.

the Profits of industrial enterprises of China for the first two months 2020 fell by 38.3% compared to the same period last year and amounted to 410,7 billion yuan (58,15 billion), according to the National Bureau of statistics of China. This is the sharpest decline since at least 2010. In December last year, the profit declined by 6.3%.

Data for January and February combined to iron out distortions caused long weekend on the occasion of the New year according to the lunar calendar.

during the celebration of the New year according to the lunar calendar, many enterprises traditionally curtail their activities or be closed for a long period. This year, however, the situation was exacerbated by the outbreak of the virus COVID-19, which delayed the opening of businesses.

it is Expected that the indicators of industrial enterprises will be improved by weakening the shock from the effects of coronavirus, and the return of firms to work. However, the growing risk of a global recession will curb the economic recovery.

Profits of state-owned industrial enterprises in China in January-February declined by 32.9% yoy, while profits of private industrial enterprises fell 36.6%.

Obligations of industrial enterprises increased by 5.3% yoy as at the end of February compared with growth of 5.4% at the end of December 2019.