The recovery of the Chinese economy shoots up: it grows 4.9% in the third quarter

 

In the rebirth of post-covid China, the scare of an economy that contracted by 6.8% in the first quarter of the year, the first fall since the end of the Cultural Revolution in 1976, seems to be left behind. Blockades to curb the coronavirus left the second world power trembling. The factory of the world stopped. So much so that, for the first time in the past 29 years, no Chinese Communist Party leader dared to set a specific economic growth target at the annual meeting of Parliament.

The current scenario, however, is completely different. In this month of October, the figures published by the National Statistics Office (NBS) of the Asian country presume an acceleration in its economic recovery: the GDP of China grew 4.9% in the third quarter of the year (July to September) compared to the same period in 2019. The pace was better than the 3.2% in the second quarter. Although the figure is still lower than the 5.2% sponsored by analysts. If we analyze the computation of the first nine months, the second largest economy in the world grew by 0.7%.

China has been saying for months that the pandemic is already under control within its borders. Normality within the Asian giant is quite similar to what it was before the arrival of the coronavirus. Even its economy is the only one that is growing compared to that of the rest of the G-20 powers. The first nation hit by Covid-19 already draws the long-awaited recovery in V. The International Monetary Fund forecast a 1.9% expansion for China throughout the year, the only major economy expected to register growth in 2020.

The data published this morning by the NBS indicate with optimism that lRetail sales are also improving: 0.9% in the third quarter compared to the previous year, with an increase of 3.3% only in September. The unemployment rate is also falling: 5.4% in September, compared to 5.6% in August. According to official figures, 7.81 million new urban jobs have been created in the first eight months of the year. Although these figures do not include the population of rural communities or many of the 291 million low-wage migrants in the country. And the majority of 8.7 million students who have graduated these months have yet to be placed in the labor market.

If we continue with the data published this morning: industrial production increased 6.9% after a 5.6% growth in August, and investment in fixed assets rose 0.8% in the first nine months compared to the same period in 2019. Trade figures for September also point to a strong recovery, with a export growth of 9.9% and 13.2% of imports compared to September of last year.

To restart the economic locomotive, Beijing began in April to implement a series of measures with three clear purposes: to support companies to avoid bankruptcies and defaults, to compensate for lost income from SMEs and to stimulate local activity. The Chinese Communist Party launched tax measures worth more than 322 billion euros, including cutting tax burdens to encourage investment and consumption, or easing Social Security payments by consumers. businessmen.

The Government also reduced the reserve ratios required from financial institutions, as well as granting 360,000 million in loans without interest for small companies; 129,000 million from the People’s Bank of China to other medium and small entities to boost loans to SMEs and 857 million in subsidies to mitigate the impacts induced by the increase in commodity prices during the coronavirus crisis .

From the Beijing offices they also boast these days of the explosion of domestic tourism after the eight days of holidays for the National Day holidays that were combined with the Mid-Autumn Festival. The Ministry of Culture and Tourism said there was 637 million national tourists. Revenues amounted to 466.56 billion yuan (58.85 billion euros). Mind you, the figure is lower compared to 650 billion yuan the previous year. The recovery was especially noticeable in the airlines that, according to data from the Civil Aviation Administration of China, offered 109,856 flights from October 1 to 8, 13% more than in the same period of 2019.

During the holidays, home consumption also skyrocketed, which is the source of 57.8% of the country’s wealth: not leaving the borders, the Chinese buy at home what they used to buy in Japan and Europe.

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