Beijing: China’s economy, which suffered a 6. 8% decline in the first quarter due to the coronavirus pandemic, the worst in 44 years, recovered and expanded by 4. 9% between July and September, backed by the government’s great efforts to boost demand and consumption. .
The world’s largest economy at the time, the first to be hit by COVID-19 earlier this year and the first in while the rest of the world was stagnant, grew faster than the 3. 2% expansion recorded in the quarter of the time, knowledge published through the National Bureau of Statistics (NBS) said Monday.
In the first 3 quarters, China’s GDP grew by 0. 7% year-on-year, returning to expansion following the 1. 6% contraction in the first half and the fall of 6. 8% in the first quarter, according to data.
To mitigate the impact effect of COVID-19, the Chinese government has implemented a number of measures, adding increased budget expenditure, tax rebates, and discounts on bank lending rates and reserve needs to stabilize expansion and employment.
Growth of nearly 5% in the third quarter is a long way from the recession in the Chinese economy when the coronavirus first made its impression in Wuhan in December last year and caused plants and markets to close across the country in the first 3 months of this year.
China’s GDP has been the hardest hit since the disastrous Cultural Revolution of 1976, falling by 6. 8% in the first quarter of 2020 when the country took unprecedented steps to address the coronavirus pandemic that paralyzed the world’s largest economy.
It is the worst contraction in the economy since China began recording quarterly figures in 1992.
But while the epidemic is largely diminished nationally, factories and schools have reopened and tourist sites across the country have resumed the same old riots, the official Xinhua news firm said.
In the third quarter, major signals returned to territory, with commercial production increasing by 5. 8% and retail sales recording this year’s first quarterly expansion, 0. 9% more year-on-year.
The country’s capital investment rose 0. 8% year-on-year in the first 3 quarters, reversing a 3. 1% drop in the first part of this year.
The source of disposable income per capita increased by 0. 6% in the first nine months, compared with a 1. 3% drop in the first part of the year.
“Given trends in key indicators, epidemic prevention and China’s economic recovery are at the forefront of the world, demonstrating the strong resilience and energy of the economy,” NBS spokesman Liu Aihua told the media.
Among the positives, new drivers of expansion, coupled with the Internet-based economy and new infrastructure, have played a bigger role in stimulating expansion, and the contribution of domestic demand is increasing, Liu said.
Monday’s knowledge showed that intake had boosted GDP expansion through 1. 7 percentage points in the third quarter, with 2. 3% slowing expansion in the second quarter.
Observers say the draconian blockades of COVID-19 combined with government stimulus seem to have worked well.
“The publication of China’s gigantic market outlook only demonstrates the country’s central strategy for increasing domestic demand, but it will also facilitate the recovery of the global economy as a whole,” Liu said.
Despite the improvements, the foundations for sustainable recovery require additional consolidation due to uncertainties and asymmetric functionality at home, Liu warned.
“In general, China has the right foundations, situations, and confidence to maintain the trend in the fourth quarter and year,” Liu added.
In the latest World Economic Outlook report released earlier this month, the International Monetary Fund (IMF) predicted that China’s economy will grow by 1. 9% in 2020, 0. 9 percentage points above the IMF’s June forecast of positive expansion this year despite the pandemic.
For long-term policy decisions, China deserves to maintain the stability and continuity of macrocontrol policies to consolidate the foundations of a sustainable recovery, while further expanding the policy of key spaces and weak links to achieve the goals and responsibilities of progression for the full year, said Wen Bin, china’s leading analyst Minsheng Bank.
In a knowledge studies report, Lu Ting, China’s leading economist at Nomura, hopes that China will no longer load easing measures or begin to harden in the short term.
China will deliver what it had planned at the end of May for the planned budget and the issuance of government bonds, while for financial and credit policies, the era of the immediate acceleration of credit expansion is over, according to the report.
“We don’t expect any relief on the proportion of reserve needs or fees until the end of 2020, but we expect additional liquidity injections into discrete channels, such as medium-term completion services, and we’re overreacting,” Xinhua news firm said. .