As the year 2021 struck, there was a drastic surge in key economic elements of the Chinese economy. This sudden change has led to the unexpected recovery of the World’s second-largest and Asia’s largest economy.
The Chinese secondary sector (industries) saw an unbelievable growth in output of 35.1% in January and February of 2021. This rate was significantly higher compared to the growth rate China had in these two months of 2020. China has seen a rapid change in growth in just one year because during these months of 2020 they were experiencing a total lockdown, while this year they are one of the few countries which have controlled the coronavirus cases to the maximum.
However, recently China’s slew of data has even crossed the analyst’s expectation. This is because China has been successfully able to rebound the economic growth target of above 6%. In addition to this, China has taken over numerous foreign investments with the top spot being the USA. Besides this, China is falling short of the USA trade deal targets.
Getting an overview of Chinese Growth in 2019, when the coronavirus had not struck the world, may give us a better understanding of where China stands and whether the growth is an improvement on where China is. The industrial output in China increased by 16.9% compared to what China’s growth was in the first two months of 2019. Apart from this, the continuous rebound in the foreign demand has led to a gradual increase in Chinese export worldwide, since it already is the factory for the world. The Chinese Government has a clear cut target of 6% economic growth for the year 2021, despite analysts predicting to reach above 8%. What makes the Chinese future prosperous is that despite 2020 being the worst year in every sense for all countries, China saw positive economic growth, with an expansion of 2.3%.
One of the spokespeople for China’s statistics bureau Liu Aihua explains to reporters how China cannot take the risk to stop its recovery. But she still said that everything is not perfect and China has faced quite a lot of hurdles to tackle them smoothly. China needs to step up support for consumption.
Retail sales, a valuable economic element, went up by 33.8% in the period, even though the unemployment rate was 5.5% at the end of February which was up from 5.2% in December. Economists have highlighted a two-speed track for China, with heavy industrial output and export demand. What is problematic is un-excited consumer recovery.
China despite being the first country to be struck by the coronavirus has successfully managed to prevent its economy from disintegrating and not just this but has been quickly able to move towards rapid development in their sectors. This may mean that the second biggest economy in the world might even take over the USA.
