Chinese economy is recovering … 3.2% growth in the second quarter


China’s gross domestic product increased by 3.2% in the second quarter of this year after recording its worst result in history early this year when the Covid-19 epidemic paralyzed the country, according to figures released Thursday by the National Bureau of Statistics.

Despite some skepticism about these figures, analysts are closely following the developments of China’s GDP, given China’s weight in the global economy.

The rise in China’s GDP was more than the estimates of a group of analysts polled by France, which they estimated to be 1.3%.

China, where the new virus appeared in December before it spread to the world, was the first country to launch its economic activity again, so it is considered a measure of the expected recovery of the global economy, according to “AFP.”

However, the pace of quarterly growth remains far from that of 2019 (+ 6.1%) and was historically the lowest. But it remains better than first-quarter growth (-6.8 percent) when the Covid-19 epidemic paralyzes the country.

However, the two exchanges of China continued to decline Thursday noon. The Shanghai Stock Exchange lost 1.41% and the Hong Kong Stock Exchange 1.17%.

Economist Iris Bang of ING said, “The market is likely to not believe the numbers” related to gross domestic product in the second quarter.

For her part, a spokeswoman for the National Bureau of Statistics Liu Aihua admitted that the Chinese economy faced “serious challenges caused by Covid-19” for the first quarter as a whole, both inside and outside the country, explaining that economic activity “is still under pressure.”

As for Fitch’s credit rating agency, it saw the improvement in the economy as a result of “the country’s success in managing the virus” and the subsidy policy pursued by the Chinese government.

Although a new outbreak of the disease appeared in Beijing, only one outbreak was reported nationwide on Thursday.

Purchasing incentives were launched in many Chinese provinces and cities through discounts and coupons to encourage consumption.

China is gradually recovering from the epidemic but its economic repercussions are enormous. Millions of workers have lost their jobs, a factor that severely affects domestic consumption.


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