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China’s economy grew 3.2% in the second quarter after a record drop.
The world’s second largest economy experienced a sharp decline in the first three months of the year during coronavirus blockades.
But figures released on Wednesday show that China’s Gross Domestic Product (GDP) grew again during April and June.
The numbers are being watched closely around the world as China restarts its economy.
The figure is higher than experts predicted and points to a V-shaped recovery, that is, a sharp drop followed by a rapid recovery.
It also means that China avoids entering a technical recession, which means two consecutive periods of negative growth.
The recovery follows a sharp drop of 6.8% in the first quarter of the year, which was the biggest contraction since quarterly GDP records began.
The country’s factories and companies were closed for most of this period when China introduced strict measures to curb the spread of the virus.
The government has been implementing a series of measures to help boost the economy, including tax exemptions.
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Is this a V-shaped recovery?
Analysis by Mariko Oi, BBC News, Singapore
The Chinese economy managed to grow stronger than expected after exiting the close.
All the stimulus measures announced by the authorities seem to be working, with factories getting busier, evident in the growth of industrial production data.
But one sector that has not recovered as quickly as they expected is retail sales.
They still fell in the second quarter, and getting people to spend again will remain a challenge.
And just as the economy begins to recover, tensions with the United States are mounting, especially over Hong Kong.
That is why some economists are reluctant to call it a V-shaped recovery yet.
A Deutsche Bank research note said the “V-shaped recovery” was “largely completed.”
“Consumer spending is still below its pre-Covid path, but the remaining gap is largely concentrated in a few sectors, travel, restaurants, leisure services, where rapid recovery is unlikely,” he added.
In May, China announced that it would not set an economic growth target for 2020 as it dealt with the consequences of the coronavirus pandemic.
It is the first time that Beijing has not had a gross domestic product (GDP) target since 1990, when records began.
During the first six months of the year, China’s economy fell 1.6%, its National Statistics Office said.
