The world’s second-largest economy suffered its worst quarterly drop in output since the 1960s between January and March, as it became the first to feel the effects of the COVID-19[feminine[feminine crisis before its global spread.
It announced a modest recovery since reopening its economy, growing 3.2% from a year earlier in the following three months.
The National Bureau of Statistics (NBS) said on Monday that a figure of 4.9% was reached in the third quarter up to the end of September.
The figure confirms the continued ‘V-shaped’ recovery – elusive in the UK and elsewhere due to second wave coronavirus infections.
Although growth was slightly weaker than analysts had expected, they pointed out that encouraging data from the last month of the period gives good cause for optimism.
Retail sales rose 3.3% in September from a year earlier, after edging up 0.5% in August, while car sales were up almost 13% from month to month previous.
Industrial production rose 6.9% after rising 5.6% in August.
It is hoped that an emerging economic recovery in China will help fuel the engine of growth elsewhere in the months to come.
But there are fears in Beijing that demand for Chinese products abroad will remain fragile as the economic fallout from the pandemic continues to take hold of key markets, including Europe.
NBS spokesman Liu Aihua said, “At present, the epidemic situation overseas is still serious.
“We are also faced with the instability and uncertainty of the international environment. Effective domestic demand is still insufficient.
“The recoveries of the various industries and regions are still unbalanced. Much remains to be done to consolidate the basis for sustainable economic growth. ”
China has delayed further post-crisis stimulus to get the economy moving in recent months for fear of adding to its massive debt at a time of weaker demand.
Authorities have decided to create nine million jobs after more than 20 million factory workers are said to have lost their jobs following the shutdown of the virus.
Independent analysts have estimated that 130 million people were out of work – at least temporarily – during the country’s lockdown.
Nevertheless, the International Monetary Fund forecasts growth of 1.9% in China for the whole year.
China would be, in this scenario, the only major economy likely to register an increase in production year on year.