The Chinese economy has continued the V-shaped recovery due to its “first in, first out” of the Covid-19 pandemic, with third quarter GDP rebounding significantly to 4.9% annually from 3.2% annually during the second quarter. , they explain analysts from the BBVA Research Department. They add that the uneven feature of the recovery that the demand side lags behind the supply side is significantly mitigating.
Key statements:
“The economic recovery gives the authorities more confidence to continue normalizing monetary and fiscal policies for the rest of the year.”
“Strong third quarter GDP growth of 4.9% YoY indicates that the V-shaped recovery continues in China. Due to the ‘first in, first out’ of Covid-19 in China, Chinese economic growth will be the only positive growth rate among major economies this year, the only silver lining amid the global recession. ”
“The uneven recovery characteristic of the supply side lagging behind the demand side has eased in the third quarter as the economy normalizes further. On the other hand, exports have shown strong resilience, supported by shipments related to the pandemic; however, we must be cautiously positive about its sustainability. ”
“The Chinese authorities are trying to normalize previous monetary and fiscal measures in the second half of 2020 amid a better-than-expected growth recovery.”
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Credits: Forex Street
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