The Chinese economy reverted to a growth of 3.2
percent YoY in 2Q20, versus the 6.8 percent YoY contraction reported for 1Q20,
thanks to the government's effective measures in combating the coronavirus
(COVID-19) pandemic, thus allowing economic activity in the country to return
to normalcy. Its industrial production resumed a 4.8 percent YoY growth in
June, against the 8.4 percent contraction recoded for 1Q20. Exports grew
slightly by 0.14 percent YoY in 2Q20 after shrinking 13.4 percent YoY in 1Q20,
attributable to short-term factors resulting from soaring shipments of
pharmaceutical products, medical supplies, and equipment such as medical masks,
in a situation where the COVID-19 pandemic is still severe in many countries.
Looking into 2H20, China's easing of guidelines to
allow travel agents to sell domestic tour packages again will likely help
reinvigorate domestic consumption and boost employment in the tourism industry,
such as the accommodation and hotel sectors, which employ more than 28 million
people. However, there is no explicit recovery sign in Chinese exports during
2H20 amid the persistent weakness seen in global demand.
Due to a more positive trend foreseen in the Chinese
economy during 2H20, KResearch expects that China’s GDP growth may improve over
the 1.8 percent YoY contraction reported for 1H20, driven primarily by private
consumption. For the full year of 2020, KResearch maintains our growth forecast
for the Chinese economy at 1.0-3.0 percent (annualized growth) because there
are numerous downside risks that may put pressure on its recovery, in
particular geopolitical risks between China and the US.
Scan QR Code
This research paper is published for general public. It is made up of various sources. Trustworthy, but the company can not authenticate. reliability The information may be changed at any time without prior notice. Data users need to be careful about the use of information. The Company will not be liable to any user or person for any damages arising from such use. The information in this report does not constitute an offer. Or advice on business decisions Anyhow.