The Chinese economy rebounds from COVID-19
In a world where countries are trying to get back on track and keep their economies afloat due to the pandemic's damages, China shows signs of recovery.
The world's second-largest economy improved in the last quarter after it had experienced its worst Q1 results in decades due to the pandemic. Between April and June, the economy posted a 3.2% growth, outperforming the analysts’ expectations.
With this outcome, China managed to wash off part of the contraction that it had in the first quarter – 6.8%. In Q1, it was the first time since 1976 when the country reported an economic decrease.
According to Refinitiv, the industrial output played an essential part in the GDP growth, soaring 4.8% in June. Still, the retail sales fell 1.8% compared to the same time last year. The drop in retail is somehow unexpected, since the government is handing out coupons to people to buy services and goods.
The country’s fiscal revenue dropped 10.8% compared to last year’s numbers. For the first six months of the year, the fiscal spending fell 5.8%.
The International Monetary Fund predicted the overall growth of 1% for China. For the US and Europe foresees sharp contractions.
The Finance Ministry stated that it plans to reach 1 trillion Yuan in special treasury bonds by the end of July. Until now, it issued 720 billion Yuan worth of special treasury bonds.
In the first half of July, HongKong45 gained 14%.
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Sources: edition.cnn.com, marketwatch.com, bbc.com
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