The global economy is struggling to get the economy moving again.
The world’s largest economy is now in a tailspin, with growth of just 1.6 percent in the first quarter, the International Monetary Fund said on Tuesday, the worst start to a year for any quarter in more than 30 years.
The global economy shrank by 0.1 percent in January and by 0,2 percent in February, the World Bank said in its latest report on the economic health of the world’s developed economies.
It said the slowing global growth was most pronounced in China and emerging markets, where growth was 1.7 percent and 0.4 percent, respectively.
“The slowdown is most pronounced for emerging markets and for China, with the slowdown in growth among emerging markets the strongest contributor to the overall slowdown,” it said.
The IMF said the global economy was growing at a rate of just 0.7 percentage points below its potential.
The IMF said that was the worst performance since the start of the global financial crisis in 2008.
China has been grappling with slowing growth for years, and the IMF said it is also the world leader in the number of people living in extreme poverty.
The number of millionaires in China is now more than 10 times higher than the global average, according to the IMF, which said China’s average wealth per person stood at $16,800 in 2016.
The Chinese government is pushing a massive package of measures to stimulate the economy, including a plan to spend an additional $300 billion on infrastructure projects, the IMF report said.
That means the country’s gross domestic product is now projected to shrink by more than 7.2 percent this year.
The U.S. and Europe have also been struggling to regain momentum, the report said, with economic growth slowing in both.
In the third quarter, China’s gross value added increased by only 0.6 percentage points to 1.8 percent, compared to the same period in 2016, according the IMF.