One is used for impressive growth numbers from China: But an 18.3 percent increase in economic output compared to the same quarter of the previous year, as announced by the Beijing Statistics Office on Friday, is something new even in the economic history of the People’s Republic. . It’s the biggest jump since the quarterly valuation began nearly 30 years ago.
The unusually strong growth is explained by the fact that the Chinese economy collapsed last spring due to the Corona pandemic. At that time, the most populous country in the world has almost stopped for several weeks.
In February 2020, driving in Beijing nearly froze life in the People’s Republic of China. Restaurants, factories, cinemas, schools, kindergartens – everything is closed. The government fortified Wuhan and surrounding Hubei Province. The economic slowdown in the first quarter was historic: it reached 6.8 percent, for the first time since official records began in 1992, and negative economic growth in the quarter. At the time, there was a huge fear that China might slide into recession in 2020, especially with the high unemployment rate: as many as 70 million Chinese have lost their jobs in the meantime, according to estimates by Zhongtai Securities.
At the end of the year, the Chinese economy grew again, totaling 2.3 percent. It is an outcome that would have put the Chinese leadership under pressure until recently. After all, millions of new jobs must be created every year, jobs for farmers who move to cities as migrant workers, for university graduates. Growth of 2.3 percent could be great in Europe, and in China a disaster, the decade-long agreement between the government and the people – the economy is booming and the Chinese are trapped in return – then threaten to erode.
But the country where the virus spread at the end of 2019 is about to be the first country to deal with. There have been no new infections in China for months, and life and economic activities have returned to normal. The strict measures to contain the coronavirus, such as cordoning off major cities, strict isolation and entry bans, have proven effective. Daily life is back in China, and there is no second or even third wave like in Europe.
The strong foreign trade has recently given a boost to the Chinese economy
The International Monetary Fund (IMF) estimates the economy could grow another 8.1 percent this year. The Chinese government is more cautious; Prime Minister Li Keqiang announced the official growth target of “more than six percent” at the opening of the National People’s Congress in early March.
Strong foreign trade, in particular, has recently driven the Chinese economy. Factories in the People’s Republic of China have been in full swing to export medical goods such as Corona tests and face masks around the world. New laptops and other home office equipment often come from China. As in the global financial crisis in 2008, China is helping to give new impetus to the global economy. Domestic demand boomed, and the government contributed to it with economic stimulus programs. So the German carmakers and several other companies operating in the Chinese market have recently been able to look to make huge profits.