On Thursday, China reported an unexpected growth rate of 3.2% for the quarter ending in June during pandemic, following the easing lock-down restrictions and manufacturing and retail sectors reopening. In the first quarter, it had a contracted growth rate of -6.8%, which was the worst performance for them since the last 6-7 decades.
The current rate of 3.2% is also one of the drastic results after the 1990s for China, the second-largest economy in the world with a nominal GDP of $14.20 trillion. However, the economic experts and analyst, including that of JP Morgan’s, expected this rate to be around 2.5% only.
China was the first country to be both affected by the current pandemic, COVID-19, and recovered from it, after it lifted its restrictions in March, stating the situation as “under control”. Industrial production boost and the property investments aided the Chinese economy to offset slumps in retail, consumer, and property sales.
Chinese administration also implemented several measures such as tax reliefs, extra fiscal spending, cuts in lending rates, and other highly intensive anti-disease measures which includes lock-down and closure of businesses according to categories. Cinemas, restaurants, and many other similar businesses are still facing some restrictions. Experts assume that China is most likely to recover faster than other nations because of these constraints.
However, customer spending is still pale and would need some time to come out of fear of the virus. The nation is also drastically affected by unemployment, and many analysts say that around 130 million people, i.e. 30% of China’s urban workforce, are out of work, temporarily. Also, out of them, at least 25 million Chinese people would lose the job this year.
In the meantime, the communist ruling party of China have promised to spend around $280 billion to create new 9 million jobs and aid the nation in bouncing back.
In total, the Chinese administration reported 68,135 confirmed corona cases, out which 63,623 recovered and 4,512 passed away.