China’s GDP grows 18.3% year-on-year in first quarter
Beijing, Apr 16 (EFE).- China’s Gross Domestic Product grew 18.3 percent year-on-year during the first quarter of 2021, the National Statistics Office reported Friday.
Although the figure is slightly lower than that predicted by analysts, who pointed to 19 percent, it is the largest increase recorded for at least three decades, when quarterly data was first measured.
This rise is mainly due to the base effect, since the same period of the previous year was marked by the first stages of the coronavirus pandemic, which led to the paralysis of the national economy and the consequent fall (the first in four decades) of 6.8 percent.
In the previous quarter, the last of 2020, China’s GDP had grown by 6.5 percent year-on-year, raising the average for the year, which ended up being 2.3 percent in the calculation of 2020, the only major economy to experience an increase during the past year.
In the division by sectors, secondary was the one that grew the most in the first quarter of the year, with 24.4 percent year-on-year, while tertiary increased 15.6 percent. The primary sector increased by 8.1 percent year-on-year in the same period.
According to the office, the record rise in Chinese GDP was due to factors such as “the low base effect of the previous year and the increase in working days during the Chinese New Year,” the main holiday period in the country, disrupted this year due to several coronavirus outbreaks.
Traditionally, these holidays involve the largest human migration on the planet, since workers usually return to their family homes to celebrate holidays as a family, but this year authorities asked them not to travel, meaning their work reincorporation was faster.
Analysts also point to other factors such as higher domestic and international demand, as well as continued support from the Chinese government for business.
Compared to the previous quarter, China’s GDP increased 0.6 percent.
The office also released other indicators Friday, such as industrial production, which increased 24.5 percent year-on-year between January and March, or retail sales, the mainstay of consumption, which grew 33.9 percent.
Investment in fixed assets grew by 25.6 percent year-on-year during the same period. EFE