A magnitude 5.5 earthquake has struck eastern China as rain continued to pelt the north-eastern regions in the wake of Typhoon Doksuri, adding more pressure to the country’s struggle to recover its economy from the COVID pandemic. 

China’s direct economic losses from natural disasters surged to 41.18 billion yuan ($8.72billion) in July, more than in January to June combined.

The impact of floods, while common in China in summer, has grown more pronounced this year, affecting over 7 million people nationwide in July, when Beijing was struck by the worst rains in 140 years.

Meanwhile, scorching summer heat and drought are threatening crops in other regions after the capital’s hottest June on record.

August, when rainfall usually peaks and temperatures soar, is set for further economic impact from floods and heatwaves.

Rainfall in north-eastern provinces could be as much as 50 per cent higher than normal in August, China’s national forecaster have warned.

Shi Heling, an economic professor at Monash University, said impact of recent natural disasters had dealt a “huge blow” to China’s economy. 

“China’s governments at all levels are already running in deficits due to costs during the three years of COVID-zero policies that used up the governments’ savings.” 

“The floods happened at the North China Plain, where there are lots of farmlands. The crops were submerged by the floods and will lead to shortage of many products.” 

The economic losses posed an unexpected drag on quarterly growth in the world’s second-largest economy, which is already in want of stimulus as Chinese officials just rolled out a series of policy measures in recent weeks to support the economy as its post-pandemic recovery falters.

Professor Shi said the authorities were also ill-prepared to deal with the flood and subsequent impacts, as the North China Plain were rarely hit by floods before.