Business & Economy

China’s GDP grows by 2.3 percent in 2020

Shanghai, China, Jan 18 (efe-epa).- China’s gross domestic product (GDP) grew by 2.3 percent in 2020 amid global economic contraction as a result of the Covid-19 pandemic, according to official data published Monday.

Despite this being the lowest rate of growth for the Asian country’s economy, it makes China among the few countries in the world – and the only major world power – to post positive growth.

China’s GDP rose by 6.5 percent year-on-year in the last quarter of 2020, consolidating the path of recovery of the economy of the world’s second largest economy after the contraction of 6.8 percent between January and March, the toughest months of the pandemic in the Asian giant, which were accompanied by a weeks-long halt in economic activity after the Lunar New Year.

The economy then rebounded to grow at 3.2 percent in the second quarter and 4.9 percent in the third.

The National Bureau of Statistics said in a statement that the country’s economy “recovered steadily” (…) and that the economic and social development goals were accomplished even better than expected.

The 2.3 percent expansion of China’s economy also beats the expectations of global institutions, whose latest forecasts were of around 2 percent growth.

In nominal terms, China’s total wealth in 2020 rose to 101.6 trillion yuan ($15.68 trillion.)

Other statistics released on Monday included retail sales, which tracks consumer spending and fell by 3.9 percent year-on-year in 2020, which according to some analysts shows that the recovery in China has been more on the supply side than the demand.

Meanwhile, industrial production in 2020 increased by 2.8 percent, investment in fixed asset by 2.9 percent and the official urban unemployment rate remained unchanged from the previous year at 5.2 percent. EFE-EPA


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