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The control of contagions, the international demand for products related to the pandemic or the stimulus policies, are some of the reasons that make economic authorities believe that China was one of the only countries with positive GDP growth in 2020.
Few countries, so far, know for sure how their economy behaved in 2020. What is almost certain is that China will be one of the few global economies to register economic expansion in 2020 and, especially, the only one of the powers to achieve it.
The Asian country grew 2.3% in its economy last year, according to the National Statistical Office (ONE), which in turn reported that it is the lowest evolution since 1976.
However, the same entity acknowledges that it is “better than expected”, and it is also so for analysts and international institutions, who predicted an advance close to 2%.
The world’s second-largest economy has surprised many analysts with the speed of its recovery from the coronavirus, especially as it has also had to navigate strained relations with the United States.
But what does China have that the other powers don’t?
A key supplier to a world in crisis
That the Chinese economy has been able to withstand the adverse effects of the pandemic is due, according to the authorities, to the control of the spread of the virus, as well as to international demand for products and stimulus policies for the population.
Tight restrictions in Beijing allowed it to largely contain the Covid-19 outbreak much faster than most countries, while increasing industrial production to supply goods to many countries crippled by the pandemic also helped the momentum.
Asia’s economic powerhouse has been boosted by a surprisingly resilient export sector. Proof of this is that, in December, Chinese foreign sales grew more than expected.
An uncertain 2021, but with sustained recovery
The authorities are confident that 2021, despite the uncertainty, may continue to deliver surprises. Last year began with an economic collapse of 6.8% year-on-year between January and March, the hardest months of the pandemic in that country.
However, the reactivation of activity since April represented increases of 3.2% in the second quarter, 4.9% in the third and, finally, 6.5% year-on-year in the fourth, a figure that not only represents a return to pre-pandemic growth rates, if not the biggest quarterly advance in two years.
“In the last 20 years, our GDP has increased tenfold, and we expect it to account for 17% of the world total in 2020 for the second year in a row,” explained ONE director Ning Jizhe at a press conference this week. Monday, January 18 in Beijing.
With EFE and Reuters
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source https://pledgetimes.com/economy-why-was-china-the-only-great-power-with-economic-growth-in-2020/
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