Economy

China economy grows 2.3% in 2020 as rebound from virus gains

PTI Beijing | Updated on January 18, 2021

That was China’s weakest growth in decades but ahead of the US and other major economies

China’s economy grew 2.3 per cent in 2020 as recovery from the Covid-19 pandemic accelerated while the US, Europe and Japan struggled with disease flare-ups.

Growth in the three months ending in December rose to 6.5 per cent over a year earlier, up from the previous quarter’s 4.9 per cent, according to official data released on Monday.

Activity contracted by 6.8 per cent in the first quarter in 2020 as factories and shops shut down to fight the virus. The following quarter, China became the first major country to grow again with a 3.2 per cent expansion after the Communist Party declared victory over the virus in March and reopened the economy.

That was China’s weakest growth in decades but ahead of the US and other major economies. They have yet to report 2020 growth but all are on track to show full-year activity contracting before vaccines are rolled out.

China has re-imposed controls on travel in some areas after a spate of cases this month but most of the country is unaffected. Growth was aided by global demand for Chinese-made masks and other medical supplies.

Exports rose 3.6 per cent last year despite a tariff war with Washington. Exporters took market share from foreign competitors that still faced anti-virus restrictions.

The International Monetary Fund and other forecasters expect economic growth to rise further this year to above 8 per cent.

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Published on January 18, 2021
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