China’s first downturn

Get straight to the good stuff every day with the Multiply Minute; a lightning-quick round-up of the money news and how it affects you.

China’s economy shrinks

China has experienced its first quarterly economic downturn since it started recording the data in 1992. The first three months of the year saw its GDP fall by 6.8% after the country ground to a halt under lockdown. China has the second-biggest economy in the world and, because it makes and buys so much stuff, its economic fortunes have a huge impact on the rest of the world.

US to open up

On the other side of the world, the US is tentatively planning to reopen parts of its economy. Yesterday, President Trump announced that individual states would be in charge of deciding when to lift measures. Stock markets in the UK and the rest of Europe have surged today at the news, in spite of the data from China.

Take a break

People struggling to keep up with payday loans, car finance, and pawn shop borrowing will be able to take a holiday from making repayments. The Financial Conduct Authority (FCA) will spend the next week consulting with firms, and the measures should come into effect by the end of April.

Pensions warning

Over-55s risk damaging their future financial security by using their pension freedoms to access their retirement savings. Many are turning to savings to cover living costs during the downturn. But the Association of British Insurers (ABI)warned against making snap decisions to withdraw pension savings, as values of investments are likely to have fallen recently.