China’s economy grows 2.3% in 2020, and consumer spending is declining | latest news


China reported Monday, January 18th, that the country’s gross domestic product rose 2.3% last year as the world struggled to contain the coronavirus pandemic.

However, Chinese consumers remained reluctant to spend, as retail sales contracted by 3.9% this year.

Fourth-quarter retail sales increased by 4.6% from a year ago.

GDP grew by 6.5% in the fourth quarter of last year.

On the other hand, economists predicted that China would be the only major economy to grow last year, and they expected GDP growth of just over 2%.

It is reported that the Corona virus first appeared in the Chinese city of Wuhan in late 2019.

In an effort to control the virus, the Chinese authorities have locked down more than half of the country, and the economy shrank by 6.8% in the first three months of 2020.

However, China returned to growth by the second quarter.

Economists polled by Reuters had forecast that gross domestic product would rise 6.1% in the fourth quarter, faster than the 4.9% pace in the previous quarter.

In late December, the National Bureau of Statistics lowered China’s official growth rate for 2019 to 6.0%, from the previously announced 6.1%.

The cut occurred primarily in manufacturing, as factories dealt with new US tariffs on billions of dollars in Chinese goods.


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