JAKARTA (TheInsiderStories) – China’ economy grew faster before the COVID-19 pandemic hit the country. In the fourth quarter 2020, the world second largest economy grew 6.5 percent from the previous quarter at 4.9 percent, even the rest of the world upended by the virus.
Based on the official data, industrial production is a huge driver of the economic growth, surging by 7.3 percent in December 2020 from the previous year. Since the coronavirus spread across the country, Chinese government has sought to spur the economic growth through major infrastructure projects and by offering cash assistance to stimulate the public spending.
Presiden Xi Jinping has launched a series of policy measures, including more fiscal spending, tax breaks, cut lending rates and bank reserve requirements to revive the virus-hit economy and support jobs. Since then, Chinese economy continues to recover from decades of lowest growth seen in the first months of the year
Last week, Chinese customs office also reported the country experienced a trade surplus US$78 billion in December 2020. Overallm the trade surplus during last year recorded $535 billion, up 27 percent from 2019. The export values rose to an all-time high.
The trade relationship with the United States (US) is becoming more unbalanced despite the Washington tough stance on China. The trade surplus with the US rose to $317 billion in 2020, a 7 percent increased from the previous year and the second-highest amount on record.
However, the total trade surplus was only $7 billion or below 2018 levels, when President Donald Trump launched a trade war with China. The country’ future is not without challenges. Analysts see the US’ President-elect, Joe Biden, likely not to reverse pressure on China after he takes office on Jan. 20.
Earlier, the International Monetary Fund (IMF) again predicts that China’ economy will grow positively by 1.9 percent in this year. The agency forecasts that the country’ economy will double compared to the previous projection. However, said the agency, the implementation of the lockdown had indeed caused Chinese economic growth to fall deeply but it could be faster to recover the economy.
Since the virus spread around the globe, IMF managing director, Kristalina Georgieva warned, that the COVID-19 will turn global economic growth “sharply negative” in 2020 with only a partial recovery seen in 2021. These, triggering the worst fallout since the 1930s Great Depression, she adds.
She underlined the pandemic has disrupted social and economic order at lightning speed and on a scale that have not seen in living memory. The virus is causing tragic loss of life, and the lockdown needed to fight it has affected billions of people.
“Its already clear, that global growth will turn sharply negative in 2020, as you will see in our World Economic Outlook next week. In fact, we anticipate the worst economic fallout since the Great Depression,” concluded by Georgieva.
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