Chinese economy to embrace resounding rebound in Q2

By Li Hong Source:Global Times Published: 2020/4/18 19:09:45

A customer purchases beverage in Jiangbei District of Chongqing, southwest China, March 23, 2020. Under strict measures taken to fight against the COVID-19, Chongqing has reopened bars, restaurants and snack vendors to citizens to boost its "night-time economy" in an orderly manner. (Xinhua/Wang Quanchao)

China's economy in the first quarter of 2020 contracted 6.8 percent year-on-year, as the country was the first to be pummeled by the unexpected outbreak of COVID-19. 

To save lives, the government ordered all non-essential businesses shut down, which caused a broader revenue plunge across the manufacturing and services sectors - main contributors to the economy.

But China is not likely to slip to and remain at a bottom level as its draconian efforts to confine more than a billion at home have succeeded, bringing coronavirus infections to a handful daily. The economy has reopened, resoundingly, and both domestic consumption and foreign trade are brisk. 

In sharp contrast to other major economies that are struggling to blunt the coronavirus' wild spread, China is set to emerge from its single-quarter deficit sooner, and enter positive territory from April to June. Some Chinese economists are forecasting 3-4 percent GDP growth for the second quarter. 

To fire up an economic restart, the country's policymakers have phased in a proactive fiscal policy by selling special government bonds to raise money for infrastructure projects. At the same time, the central bank is lowering benchmark market loan rates to assist enterprises to expand manufacturing and hold on to their workers. Since late March, the manufacturing and services sectors have gained renewed momentum. 

Businesses centering on telecoms and information technology innovations - like long-distance learning and telework software, cloud entertaining applications, and e-commerce platforms - continue to boom, in addition to the pent-up blossoming of financial services in China. 

The country's lead in 5G, robotics and AI development will open up a host of new opportunities including efficient and revolutionary business models, as well as many high-paying jobs.

Step by step, resumption of work and production will accelerate, and the country will see its landmark high-speed rails extend to outlying regions inhabited by minorities. Underground subways will be constructed through the China's second and third-tier cities. 

National Bureau of Statistics spokesperson Mao Shengyong said on Saturday in Beijing that he has confidence in the Chinese economy's resilience, and he expects it will perform much better in Q2 with stronger policy support measures now put in place.

China's extraordinary political system has set the foundation for its economic progress over the past 40 years. Its unique system has proven its distinctiveness in dousing and containing the coronavirus within two months. And the system will utilize the creativity of its 1.4 billion people to rejuvenate the nation.  

The author is an editor with the Global Times.


blog comments powered by Disqus