China’s official gross domestic product (GDP) figures are important when it comes to tracking the health of the world’s second-largest economy. Notably, China’s GDP grew by 3.2% in the second quarter.
It is worth noting that its GDP grew by 3.2% more compared to the same period of time in 2019. Moreover, this result surpassed analysts’ expectations. This information shows that, despite the coronavirus pandemic, the local economy was able to get back on track. The county’s government made the right decision when the government decided to introduce stimulus measures to support the economy.
Interestingly, in the first quarter of this year, the GDP contracted by 6.8% in 2020 compared to the same period last year. During the first quarter, the coronavirus caused a lot of problems for the local economy. This was also the country’s first GDP decline since at least 1992. This is the time the official quarterly records go back to.
Notably, for a long time, many outside experts expressed skepticism about the accuracy of China’s reports. According to the country’s National Bureau of Statistics, the national economy was able to overcome the impact of coronavirus. Moreover, the economy demonstrated a momentum of restorative growth, as well as gradual recovery. As mentioned above, the Chinese government implemented measures to support the economy, including fiscal spending and cuts in lending rates. Furthermore, the government made the decision to reduce the banks’ reserve requirements, the amount of cash that lenders must hold in reserve.
The state of the local economy
China’s dollar-denominated exports, as well as imports, increased in June. Moreover, manufacturing activity in June also expanded in comparison to May. One can partly explain this by the fact that China started to remove lockdown measures earlier than other countries.
China has the potential to sustain its economic recovery in the next two quarters at least, as the domestic economy strengthened its positions.
However, there are certain problems as well. The coronavirus pandemic is a serious challenge for the local economy. The number of coronavirus cases continues to rise and surpassed 13.5 million around the world. According to the country’s National Bureau of Statistics, the coronavirus pandemic is a serious problem for the global economy.
Moreover, the world economy is expected to fall into recession in 2020. Many governments around the world implemented lockdowns and limited business activity as well as social gatherings. As a result, slowing growth in global demand represents an important challenge for Chinese exports.
To sum up, China’s GDP grew by 3.2% in the second quarter compared to a year ago, and this is a rather good result, after taking into account all of these issues.
COMMENTS