China's economy suffers from anti-COVID measures

As the world continues to fight the COVID-19, China is still following its tactics, showing zero spread of the virus. 

Country’s economy, in turn, is experiencing negative consequences from restrictions related to the pandemic. As official data said on Friday, the Chinese economy demonstrated a slight upward trend, while the leading indicator in the manufacturing sector showed a sharp drop.

Service sector sentiment also showed a decline despite all market expectations.

Falling performance of the world's second largest economy isn’t great news prior to the Communist Party Congress scheduled for October 16 in Beijing. Xi Jinping plans to stay for a third term, having received the status of Secretary General and Chairman of the People's Republic of China more than a decade ago. The decision is expected to be announced at the upcoming Congress.

In the second quarter, China's GDP growth stalled at just 0.4%. According to experts' forecasts, the government's target of 5.5% is unlikely to be achieved in 2022. The World Bank also lowered its expectations for the country's economy this week, predicting growth of 2.8%.