Alibaba recovers, future ‘uncertain’

Chinese e-commerce giant Alibaba said it has seen a “steady recovery” in the country since March, but warned that the path to an economic rebound remains uncertain.

The firm’s sales grew 22 per cent in the three months to 31 March, despite virus-related restrictions denting activity.

The gain was stronger than expected, driven by demand for groceries, electronics and cloud computing.

Supply chain disruptions and investment losses weighed on its results overall.

The performance of China’s economy - in which Alibaba is a key player - is being closely watched as a preview of how the rest of the world might fare following abrupt economic shutdowns aimed at controlling the spread of Covid-19.

The country’s government said this week that it would not set an economic growth target. This marks the first time it has declined to do so since 1990.