The Chinese government’s attempts to boost growth in the midst of the coronavirus crisis seem to have borne fruit, with recent indicators pointing to a gradual economic recovery.
Data from the country’s National Bureau of Statistics (NBS) revels that the retail sales of consumer goods, a reliable barometer of China's consumption, returned to growth for the first time this year, up 0.5% during August 2020. This compares to shrinkage of 1.1% in July 2020.
Industrial output rose 5.6% in August this year, up from the 4.8% growth seen the previous month. During the January to August 2020 period, industrial output rose 0.4% when compared to the same period in 2019.
In August 2020, China’s employment numbers remained stable at 5.6%, just 0.1 percentage points less than that of July.
China’s GDP grew 3.2% in the second quarter of the year, compared to a contraction of 6.8% during the first quarter. The government launched a series of measures designed to boost economic growth and buffer the economy from the coronavirus impact, including increased fiscal spending, cuts in lending rates and banks’ reserve requirements, customer incentives and tax relief.
The international credit rating agency Moody’s has raised its growth forecast for the Chinese economy for 2020 to 1.9% from the earlier 1%- its only upward revision for the annual growth of major economies.