Chinese economy ascends despite the hurdle posed by the persisting health crisis, propelled by an impressive resumption of production. The National Bureau of Statistics reported earlier a 7.3% year on year growth in industrial production for December. The actual data surpassed analysts’ expectation of a 6.9% hike and the 7% growth notched in the preceding month.
The East Asian nation gained momentum, especially in the last part of 2020. They are observing strong manufacturing, infrastructure, and real estate performance. Still topping the list is the growth in exports due to overseas demand for medical equipment and remote job devices. This is organic with the world’s unprecedented shift to work from home schemes amid the pandemic.
China’s GDP hiked by 6.5% compared to a year earlier for the last three months of 2020. This topped expectations of a 6.1% growth. Similarly, it made the 4.9% growth during the third quarter look rather small, but still significant.
On the other hand, quarter on quarter growth failed to meet expectations after settling at 2.6%. This is lower than the forecasted 3.2% hike and the 2.7% growth of the previous period.
With these impressive data, China is the only developed nation that reported expansion during the challenging year. Its leading counterparts remain stuck in a slump, undermined by persisting coronavirus cases in their borders.
Economists are currently optimistic that the economy could expand as much as 8.2% for 2021 due to steady economic indicators. However, some experts in the field argue that the risk remains high, especially now that there was infection cases’ insurgence.
For the record, the National Health Commission reported more than a hundred COVID-19 cases on January 17. Such data is one of the highest since July.
Impressive Economic Indicators in the Fourth Quarter
Three weeks in during the new year, China did not fail to exceed expectations every “reports day” on its economic indicators. The country can sustain momentum during the fourth quarter.
The growth is supported by revamping international and domestic demand for goods and the presence of the fiscal stimulus. Experts noted that the monetary injection played a big role in stimulating consumer spending, thus boosting the Chinese economy further. With this, the world’s second-largest economy reported an impressive fourth-quarter performance.
This contributed to the 2.3% full-year expansion in 2020, even with the health crisis. Still, this is China’s weakest yearly expansion in the last four decades.