China reported that the country’s GDP grew by 3.2%
in the second quarter of this year, compared to a year ago — beating
analysts’ expectations and rebounding from the first quarter’s
contraction.
It comes as lockdowns to contain the coronavirus outbreak in China eased, and as Beijing rolled out stimulus measures to prop up its economy.
Economists polled by Reuters expected gross domestic product to have grown modestly at 2.5% in the April to June quarter.
China’s first quarter GDP
contracted by 6.8% in 2020 from a year ago as the world’s second
largest economy took a huge hit from the coronavirus outbreak. This was
the country’s first GDP decline since at least 1992, when official
quarterly records started.
China’s official GDP figures are
tracked as an indicator of the health of the world’s
second-largest economy, but many outside experts have long expressed
skepticism about the veracity of China’s reports.
“Generally
speaking, the national economy overcame the adverse impact of the
epidemic in the first half gradually and demonstrated a momentum of
restorative growth and gradual recovery, further manifesting its
development resilience and vitality,” said China’s National Bureau of
Statistics in a press release on Thursday.
The Chinese government has introduced measures to boost the economy
including fiscal spending and cuts in lending rates and banks’ reserve
requirements — the amount of cash that lenders must hold in reserve.
Signs of recovery
Recent data out of China show some signs of recovery. Trade numbers in June showed that China’s dollar-denominated exports and imports rose. Manufacturing activity in June also expanded compared to May, two different sets of surveys showed.
Chinese
exports have been getting “massive market share” while the rest of the
world was locked down, said Bo Zhuang, chief China economist at TS
Lombard before the data release. China started easing lockdown measures
earlier than other countries.