China’s GDP growth slows in 2020: causes
Last year brought many trials to the world; there is no country that did not feel the negative effects after the pandemic. Some countries were able to start recovering fairly quickly and neutralize the crisis processes by 2021, while others were less fortunate. The only one who managed to avoid a collapse of the economy in 2020 was China. However, even these figures were unsatisfactory for the power, especially when compared with the results of previous periods. According to statistics, China’s GDP growth in 2020 was the lowest in 45 years, at 2.3%. The last time such minimal values were observed was in 1976, when China’s economy declined by 1.6%.
Before the impact of the pandemic, the country had a consistently high growth rate of over 6%. For example, China’s GDP grew 6.8% in 2017 and 6.6% in 2018. In 2019, the pace slowed slightly to 6%.
Despite the slowdown, the PRC performed well during the pandemic. The power was able to recover internally as quickly as possible after the pandemic, increase production, and support companies that were going through a crisis. China’s economy grew by Q4, and this was not hampered by the difficulties associated with trade agreements with the U.S. GDP was down 6.8% in Q1 2020, but it was up 3.2% in Q2, 4.9% in Q3 and 6.5% in Q4. In December, exports from China increased by a higher percentage than analysts predicted. This rise was primarily due to an increase in demand for Chinese goods around the world, after supplies from the country were almost completely stopped at the beginning of the pandemic.Experts of the British center, which is engaged in economic research, say that thanks to the pandemic, China will be able to overtake the U.S. economy 5 years faster than previously assumed. According to forecasts, China will have the world’s largest economy already by 2028, although analysts previously talked about 2033.
China was the first country where cases of COVID-19 were recorded last winter. For several months, it recorded the largest number of cases in the world, but Italy and the United States were the leaders in the spring. China managed to neutralize the pandemic faster than anyone else and began to actively restore the economy. In addition to supporting the economy, the authorities focused on strengthening the domestic market, thereby reducing the country’s dependence on supplies from other countries.