Fresh Covid-19 outbreak, floods spell double trouble for China's economy

Economic costs of floods, which have so far affected 27 of China's provincial-level jurisdictions, is likely to hit $20.6 billion

Fresh clusters of Covid-19 cases coupled with massive flooding may impede China's recovery from the pandemic as consumption and construction are likely to be hit, reports South China Morning Post.

China avoided a recession after its economy grew by 3.2 per cent in the second quarter of 2020, the first major economy to show a recovery from the damage caused by the coronavirus after its gross domestic production (GDP) shrank by 6.8 per cent in the first three months of the year.

But consumption, which was badly affected by Covid-19, remains a fragile spot for China after retail sales -- a key measurement of