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China’s GDP grew 4.9% in Q3

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Miguel A. Rodriguez
Miguel A. Rodriguez
19 October 2020
The Chinese economy is on an upward trend

While countries worldwide are struggling to keep their economies afloat given that another wave of COVID-19 infections is happening, others are flourishing.

The data from the National Bureau of Statistics of China showed that the country’s economic rebound from the pandemic pushed the gas pedal in the third quarter. The world’s second-largest economy expanded 4.9% compared to both year-ago numbers and this year's Q2 of 3.2%. However, the growth is weaker than the 5.2% expected by the markets.

According to analysts, all was possible due to the drastic lockdowns and policies enforced to contain the virus. Moreover, the country put aside hundreds of billions of dollars to finance massive infrastructure projects made to boost economic growth. For the first nine months of 2020, the Chinese GDP grew by 0.7%.

The growth has been fueled by the 0.9% increase in retail sales, in September alone gaining 3.3%, as more people "come out from their homes and spend money in the physical shops." At the same time, the industrial production grew 5.8%, the figures being higher than the 4.4% uptick reported in Q2.

To keep this momentum, the country is focusing on domestic demand.  According to Yi, the central bank governor, there won’t be a change in the current policies anytime soon. Moreover, the governor expects rising debt and bad loans.

Following the news, HongKong45 gained 0.6%.

Sources: reuters.com, forexfactory.com, edition.cnn.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.