China: The first major economy to recover from pandemic

The people’s Republic of China shows an improvement in its economy.

Amid the COVID-19 global pandemic, China has reported a growth in its economy. According to the government’s data, the Chinese economy grew by 4.9% between July and September.

The matter made the country the first to start recovering since the pandemic in December 2019. Most of the cities have reopened their educational institutions and offices. It has also crossed a two-month mark without any new local transmissions.

At the beginning of this year, the Chinese economy experienced a shrink of 6.8%. Experts say it’s the first since 1992.

According to the International Monetary Fund, the global economy is expected to drop by 4.4%, and will be the steepest since the “Great Depression.”

The Golden week celebrations

As of Oct. 19, the industrial sector recorded a 6.9% growth compared to last year’s September data. Additionally, it also showed an increase in domestic travel, automobile, and retail sales.

Despite the international ban on tourism, the country saw an increase in domestic tourism. This growth can partially be owed to the Golden week.

The public holiday, an eight-day-long celebration, has seen more than 600 million people making trips across the country. According to the Ministry of Culture and Tourism data, it has generated almost $69.6 billion in revenue during the national holiday week.

Hainan, which is a tropical island in the country, initiated duty-free sales. This led to an increase in sales of almost 150% compared to last year.

Yi Gang, Governor of China’s Central Bank, stated that the economy is resilient and has great potential. He further stated that they are expecting a continuous recovery, which will also benefit the global economy.

Easing into transition and the dual economy

China could be the only G20 economy to grow this year. The officials further predict the growth of two percent annually. After the initial and gradual reopening, the policymakers released targeted stimulus measures to help ease the transition.

The matter included tax reductions and low-interest rates. The measures help credit local governments in the country in stabilizing their businesses.

Despite the growth, many disagree and argue that the recovering of the economy remains uncertain. It is further stated that the numbers are often manipulated by the local governments to show a rise.

The country could further expect slower growth and more difficult international relations. In May this year, Xi Jinping introduced the concept of a dual economy. It aims at promoting domestic developments and reducing the dependence of Chinese markets on overseas markets.

Image courtesy of Golden Brown/Shutterstock

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