China's economic growth rate of 2.3% in 2020...realized a'V'-shaped rebound

Amid the corona pandemic, the Chinese economy achieved a'V'-shaped rebound. In the first quarter of 2020, it recorded negative growth for the first time due to the corona shock, but it succeeded in the positive transition in the second quarter and recovered to 4.9% in the third quarter and 6.5% in the fourth quarter to the level before the corona crisis.

 

The annual economic growth rate in 2020 is 2.3%, lower than the previous year, but it is of great significance that China is the only one in the world in the corona era to achieve positive growth. The scale of GDP exceeded 100 trillion yuan (101,5982 billion yuan) for the first time in history.

 

Industrial production is the first indicator that overcame the corona shock and showed a recovery trend. Thanks to the government's strong support for resumption of operations, it turned positive in April 2020, exceeding the level of the last two years since August. The growth rate of industrial production in December was 7.3%, the highest since March 2019. The growth rate in 2020 was estimated at 2.8%.

 

By industry, high-tech and equipment manufacturing industrial production growth in 2020 increased by 7.1% and 6.6%, respectively, showing strong strength. The manufacturing industry of specialized equipment, communication/electronic devices, and electromechanical equipment recovered to the level of December 2019, and the automobile and general equipment manufacturing industry exceeded the growth rate of the previous year. Among them, production of industrial robots, new energy vehicles, integrated circuits, and small-sized calculators showed a double-digit increase of 19.1%, 17.3%, 16.2%, and 12.7%, respectively.

 

Industrial production surpassed improvement and showed an uptrend, while the service industry had slowed down due to sporadic infections. Both the service industry production index and service industry PMI, which showed a recovery trend since March, declined in December. In 2020, the growth rate of the tertiary industry in China was less than that of the secondary industry. It has been 8 years since 2012. An analyst at Zhongtai Securities predicted that the service industry, particularly in the hospitality and hospitality industry, will continue to suffer for some time as sporadic infections continue to occur at the beginning of the year 2021. On the other hand, fields such as information and communications and finance are expected to continue booming this year.