From being the first country where the Covid-19 virus was detected, China is all set to become the only major economy in the world that will grow in 2020. China’s gross domestic product (GDP) expanded 4.9% in the July-September quarter, according to statistics released by the country’s National Bureau of Statistics.
Given its position as the world’s second largest economy, China’s V-shaped recovery has generated hopes of a rare growth cushion across the globe.
Its GDP contracted by 5.3% in the January-March quarter, grew 3.2% in April-June, and further improved in July-September. While the September quarter figure is lower than the 5.2% estimated by a Reuters poll of analysts, China is all set to become the only major country to escape a GDP contraction this year, Eswar Prasad, an economist from Cornell University, told the Financial Times.
The International Monetary Fund (IMF) has predicted that China’s GDP will grow 1.9% this year in its World Economic Outlook released earlier this month.
China’s growth numbers also underscore the importance of containing the spread of the Covid-19 pandemic for an economic recovery. Not only did China quickly contain the spread of the virus, it has been able to prevent a second wave of infections so far, unlike other major countries.
The US, which is the world’s largest economy, is beginning to see a third wave while countries India, even though there has been a dip in the first wave, continue to report quite large numbers.
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