China’s GDP: 2.3% growth in 2020 as recovery recovery accelerates

The world’s second-largest economy expanded 2.3% in 2020 from a year earlier, according to government figures released on Monday.

That’s China’s slowest annual growth rate in decades – 1976 hasn’t been a bad year for the country, when GDP fell 1.6% during times of social and economic unrest.

But China has clearly topped the list during a year when the disability epidemic pushed the world’s major economies into recession. The expansion also beat expectations: the International Monetary Fund, for example, predicts that China’s economy will grow 1.9% in 2020. It is the only major world economy expected to grow by the IMF.

The country hit its growth target last year for the first time in decades as the epidemic hit the economy historically. GDP fell about 7% in the first quarter, as large parts of the country were put on lockdown for the spread of the virus.

Since then, the government has sought to accelerate growth through large infrastructure projects and by offering cash handouts to stimulate spending among citizens.

Industrial production in particular was a major driver of growth, up from December of the previous year.3. jump% increased.

In a research report Monday, Frederick Neumann, co-head of HSBC’s Asian Economics Research, wrote: “Outside of the lockdown, the Chinese economy was moving ahead at a time when most of the world was struggling to maintain balance.”

This “lays a floor under growth” in the second Regional markets, he added. China’s large investment in infrastructure and wealth, for example, is a boon to countries such as Australia, Australia, South Korea and Japan that export supplies to China.

Trade has also been strong. According to the data released last Friday, China’s overall surplus in the year 2001 has reached a record of $ 5 billion in 2019, an increase of 27% over 2019. Analysts pointed out that the country People around the world have benefited from the high demand for protective gear and electronics as they work from home.

There are still some weak spots though. Retail sales lost little steam in December, up 4.6% from 5% in November. Retail sales fell 9.9% for the full year. Ning, a spokesman for the National Bureau of Statistics, blamed declining sales on the resurgence of the coronavirus in several places.

“Scattered” cases in China will bring uncertainty [our] Economic recovery, “ He added.

Still, Ning said the country believes the epidemic is under control, and said officials expect people to spend more money this year.

Analysts of capital economics, Meanwhile, the outlook is expected to be “bright” in the near term.

Julian Evans-Pritchard, a senior economist at Capital Economics, noted on Monday that “despite the latest decline in retail sales, we have seen a surge in consumption as they drive growing savings in households over the past year.” “Meanwhile, last year’s stimulus tails should strengthen industry and construction for a while.”