Economists polled by Reuters had forecast a growth of 6.1 percent, while the growth rate in the third quarter was 4.9 percent.
GDP grew by 2.3 percent in 2020, according to the figures, making China the only major economy in the world that did not contract last year in light of the difficulties faced by many countries to contain the (Covid-19) pandemic.
The growth exceeded the rate that many institutions had expected, as the International Monetary Fund had predicted that China would grow by only 1.9 percent over the past year, and after achieving 4.9 percent growth in the third quarter, the Chinese economy expanded 6.5 percent year-on-year in the quarter. Last from last year.
The second largest economy in the world witnessed a strong recovery last year from the paralysis caused by the Corona virus, fueled by the sudden strength of the export sector, but consumption – a major engine of growth – did not live up to expectations amid fears of a return of (Covid-19) infections. For height.
Positive economic data reduced the need for more monetary easing this year, which prompted the central bank to reduce some support measures, sources told Reuters, but senior policymakers say there will be no sharp shift in policy direction.
Compared with the previous quarter, gross domestic product grew by 2.6 percent between October and December, according to the Bureau of Statistics, while it was expected to grow 3.2 percent, and compared with an increase of 3 percent in the previous quarter.
While most countries of the world recorded a contraction, economic activity in China in general returned to its normal levels, and exceeded the Corona virus pandemic last summer, as only fewer outbreaks and sporadic infections were recorded in China since that time.
China’s trade surplus last month was $ 78.2 billion, while the average forecast of analysts polled by Bloomberg was only $ 72 billion. China’s total trade surplus during the past year as a whole was $ 535 billion, an increase of 27 percent over the trade surplus for 2019 and the largest trade surplus for China since 2015.
The strong performance of Chinese exports came thanks to the fact that the Chinese economy has rapidly adapted to the new situation of demand in other countries, including the increased demand for electronic devices, especially home office devices, as well as the increased demand for medical protection supplies. With the expected continued strong performance of exports during the current year, the International Monetary Fund expects China’s economy to grow this year at a rate of 7.9 percent.
The new economic plan, expected to be approved during the annual Chinese People’s Congress meetings in March, is expected to give a new impetus to economic growth.
The plan identifies areas in which China has suffered the biggest setbacks in recent years, as trade and technology disputes with countries such as Australia and the United States have highlighted China’s dependence on other countries.
China wants to adopt a new economic path, which further boosts domestic demand and innovation, and preliminary data from the core elite in the ruling Communist Party in China shows the features of the new plan. Despite the positive outlook for the Chinese economy, there are warnings of continuing challenges.