China's economic growth plunged to 0.4 per cent over a year earlier in the latest quarter after Shanghai and other cities were shut down to fight coronavirus outbreaks, but the government said a "stable recovery" is underway.

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Growth slid from the previous quarter's already-weak 1.3 per cent after restrictions were imposed starting in late March but activity improved in May and June, the National Bureau of Statistics announced Friday.

The anti-virus controls disrupted shipping in Shanghai, the world's busiest port, and disrupted manufacturing there and in other major cities. Millions of families were confined to their homes, depressing consumer spending.

Most economic forecasters expect China to fail to hit the ruling Communist Party's 5.