According to the data released by the National Bureau of Statistics on the 18th, the gross domestic product (GDP) of China will increase by 2.3% in 2020, including 6.5% in the fourth quarter. According to foreign media reports, China’s economy is recovering against the trend, with a faster growth rate than expected. This trend will continue and will help the global economic growth.
The New York Times: China’s economy is recovering against the trend
The New York Times reported that under the epidemic, most countries in the world are facing round after round of blockades and layoffs. Only one major economy has achieved economic rebound after basically controlling the epidemic, and that is China.
China’s National Bureau of Statistics announced on the 18th that China’s economy grew by 2.3% last year. In contrast, the economic output of the United States, Japan and many European countries is expected to drop sharply.
Although the recovery process is different, factories all over China are running at an excessive speed to meet overseas orders, and cranes on construction sites are never stopping. Exports and infrastructure were the main drivers of economic growth in the past year. China’s exports increased by 18.1% in December last year, and by 21.1% in November. From high-speed rail lines to new apartment buildings, all investment in fixed assets climbed by 2.9% last year.
The New York Times pointed out that both exports and infrastructure will provide impetus for economic development in 2021.
Reuters: China’s economy will grow at the fastest rate in ten years.
Reuters reported that in the fourth quarter of 2020, China’s economy accelerated, and the growth rate exceeded expectations. In 2020, China’s GDP increased by 2.3% compared with the previous year, making it the only major economy in the world to achieve positive growth.
China took strict measures to curb the spread of the virus, so it was able to control the epidemic faster than most countries. At the same time, the government has implemented some effective measures, and manufacturers have accelerated production to supply goods to many countries plagued by the epidemic, which has also helped promote the momentum of economic growth.
China’s huge manufacturing industry will continue to grow. In December 2020, the added value of industrial enterprises above designated size increased by 7.3% year-on-year, which was faster than expected, setting a record since March 2019.
According to Reuters’s survey, it is predicted that China will continue to lead other countries in 2021, and its GDP will grow at the fastest rate in ten years, reaching 8.4%.
CNN: China’s economic initiatives benefit other countries.
CNN reported that the economy of most parts of the world was deeply affected by the COVID-19 epidemic, but China’s economy maintained growth last year, which exceeded expectations.
Frederic Neumann, co-head of Asian economic research at HSBC, said in a research report that China’s economy is in a leading position when most countries in the world are struggling to keep a balance. In his view, this has laid the growth bottom line for other markets in the region. China’s investment in infrastructure and real estate has surged, which is good news for countries such as Australia, South Korea and Japan.
China’s trade growth is also very strong. Analysts pointed out that people all over the world work from home, and the demand for protective equipment and electronic products has greatly increased, from which China has benefited.
Julian Evans-prichard, an economist at Kaitou International Macroeconomic Consulting Company, pointed out that despite the recent decline in the retail industry, we think there is still room for growth in consumption as households use the savings they saved last year. At the same time, last year’s stimulus measures will keep the industry and construction industry strong for some time.
Bloomberg: China’s economic growth helps global economic development.
Bloomberg reported that the growth rate of China in 2020 exceeded expectations. Bloomberg economists had predicted that China’s economic growth rate was 6.2% in the fourth quarter and 2.1% for the whole year, but the actual results were 6.5% and 2.3% respectively.
Yang Yuting, chief economist of ANZ Greater China, said that China is not only returning to the growth track, but the strong rebound means that relevant departments can give priority to structural reform in 2021.
China’s V-shaped recovery is based on the successful control of the epidemic and the promotion of investment in real estate and infrastructure through fiscal and monetary policies. At the same time, the overseas demand for medical equipment and home office supplies in China is increasing, and the export in 2020 will increase by 3.6% year-on-year, which further promotes the economic growth of China.
Some economists predict that China’s GDP growth rate will reach 8.2% in 2021. With the vaccination, other economies have begun to recover, but China will continue to lead.