Economy & Politics

China sees its growth rebound

The Chinese economy rebounded 4.9% year-on-year in the third quarter, confirming its recovery after a historic collapse in GDP at the start of the year due to covid-19.

The Chinese economy rebounded 4.9% year-on-year in the third quarter, confirming its recovery after a historic collapse in GDP at the start of the year due to covid-19.

(AFP) – The first country hit by the covid epidemic, China is also the first state to (appear) to recover from the crisis linked to this upheaval. On Monday, the authorities thus announced a resumption of activity of + 4.9% between July and September. Although questionable, China’s official GDP figure is still under scrutiny given the country’s weight in the global economy.

This growth rate remains far from the level reached in 2019 (+ 6.1%), which was already a three-decade low. But it is much better than in the first quarter (-6.8%) when China had its worst economic performance since the end of the Maoist era, when the Covid-19 epidemic paralyzed the country.


As a direct consequence of the confinement, the production of wealth in Luxembourg fell by 7.8% in the second quarter of 2020 compared to the second quarter of 2019, according to Statec data published on Friday.


The Asian giant, where the new coronavirus appeared at the end of last year, has since managed to practically eradicate the epidemic. And from the second quarter, the country returned to growth (+ 3.2%). Over the period from July to September, the Chinese economy experienced “a sustained recovery” despite a “difficult” economic situation both in China and abroad due to the Covid-19 pandemic, the National Bureau of Statistics.

For their part, retail sales rose sharply in September over one year (+ 3.3%). Growth that can make you dream in Luxembourg where the second quarter was marked by a much more timid recovery trend. However, some sectors are still struggling, such as hotels, restaurants and leisure. This result is higher than the previous month (+ 0.5%), as well as analysts’ forecasts, who on average expected + 1.6%.

Controlled unemployment

At the same time, the industrial production of the Asian giant achieved its best performance since the start of 2020 with an increase of 6.9% over one year. This is a result above the expectations of analysts polled by the financial agency Bloomberg (+ 5.8%). The unemployment rate, measured in China only in urban areas, stood in September at 5.4% against 5.6% the previous month. Particularly monitored by the government, this figure excludes from its calculation the millions of migrant workers, weakened by the pandemic. The unemployment rate reached an all-time high of 6.2% of the urban labor force in February.


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