China is the world’s first major economy to grow after COVID-19, after reporting a positive GDP for Quarter 3. The latest economic data from National Bureau of Statistics of China has shown a 4.9 per cent GDP growth in the third quarter, a positive sign after a -6.8 per cent GDP plummet in quarter one in the middle of China’s coronavirus peak.
Some of the economic rebound in China, the world’s second-largest economy, is said to be due to containment measures that would be hard to replicate or enforce in a democracy, however, according to UBS’s China Economic comment report, the recovery is attributed to increased demand for goods and products.
“Property activities, investment and industrial production have all continued to rebound in Q3,” the UBS report wrote.
“In addition to strong demand for Covid-19 related products and electronics, improving global demand and China’s resilient and flexible supply chain boosted exports notably.”
According to National Bureau of Statistics of China, the year-on-year growth of China’s GDP for this year is 0.7 per cent.
Further data shows that the total value of import and export has shifted from negative to positive for the first time this year, with a 7.5 per cent year on year growth.
September’s exports increased by 8.7 per cent to the value of 1.66 trillion Yuan, compared to the same period last year.
The month’s imports, while increasing by 11.6 per cent to the value of 1.4 trillion Yuan, have experienced a 0.6 per cent drop year on year.
Spokesperson for the National Bureau of Statistics Liu Aihua has said they are confident China will continue on its economic incline.
“Judging from demand and production, the confidence and vitality of the whole market and other aspects, we have the foundations, conditions and confidence to keep the current trend into the fourth quarter and even the full year.”
China is expected to be the only G20 nation to have a positive GDP growth in 2020, according to outlook data from the International Monetary Fund.
China is forecasted to have a positive 1.9 per cent GDP growth in 2020, while Italy, Spain and the United Kingdom are expected to have a double-digit fall in GDP.
Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
