China, again, is the front-runner in recovering the economy. China managed to record a rise in GDP last year despite the coronavirus pandemic. Though the figure still underperforms compared to the previous year’s record, it goes over economists, and even IMF’s, expectation.
China: the economy is growing better than expected
China’s government statistics released on Monday revealed that the country recorded a 2.3% rise of GDP compared to the previous year. Despite the increasing GDP, China suffers from slower retail sales with 3.9% contraction for 2020, CNBC reports. The 4.6% increase from a year ago in the fourth quarter seems to be still insufficient to boost the retail sales for the year. The slowing GDP marks the flimsiest annual growth rate in decades. According to CNN, the worst remains in 1976 with 1.6% slope due to social and economic tumult.
China remains the frontrunner in economic recovery
China once again proves its power as the world’s second-largest economy. The country has managed to exceed economists’ prediction for economic growth, including the IMF. According to CNN, the IMF previously predicted that China would record a 1.9% growth in 2020. Additionally, China’s pace recovery is also getting better. With a 6.5% rise in the fourth quarter from the previous year’s comparison, China surpassed the 4.9% growth from the third quarter.
China’s National Bureau of Statistics, Ning Jizhe, even commented that “the performance was better than we had expected” upon a press conference in Beijing, CNN quotes.
China benefitted a lot from several sectors. In particular, industrial production contributed a big part in the growth with a 7.3% rise in December from a year earlier. China’s trade was also 27% higher from 2019 with $535 billion in the overall surplus. The rising demand in protective gear and electronics driven by quarantine and the work from home accelerated China’s trade.
Read also: China Leads the Worldwide Economic Recovery
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