According to official data released on Friday, China's economic growth dropped to a two-year low in the second quarter as a result of Covid-19 lockdowns and a struggling real estate market
The National Bureau of Statistics (NBS) reported that from April to June, the second-largest economy in the world had a growth of 0.4%
The slowdown follows a two-month closure of Shanghai, the largest city in China, as it battled a Covid comeback that tangled supply networks and forced companies to shut down.
Although this has damaged businesses and unnerved customers, Beijing has remained committed to its zero-Covid policy
The NBS noted declining demand and disrupted supplies in a statement on Friday, saying "Domestically, the impact of the outbreak is persisting."
The statement also noted that as external uncertainties increase, "the possibility of stagflation in the international economy is rising."