Pandemic effect: China`s GDP slows to lowest in more than four decades

Pandemic effect: China`s GDP slows to lowest in more than four decades

"First, it has successfully contained the spread of the virus and reopened its manufacturing capacity, while most other major economies are still grappling with production problems".

The country's economic recovery was aided by global demand for Chinese-made masks and other medical supplies.

The growing momentum "reflected improving private consumption expenditure as well as buoyant net exports", said Rajiv Biswas of IHS Markit in a report. Just $5 a month.

The pace was faster than the 0.7-percent increase in the first three quarters, data from the National Bureau of Statistics showed. At a December meeting to lay out economic goals for 2021, the ruling Communist Party signaled that stimulus would be gradually withdrawn, although it would avoid any "sharp turns" in policy.

"But the risk of a technology war between China and certain economies remains if the United States does not remove certain measures".

The high-grade Brazilian index (65% Fe fines) is back near record high at $194.30 a tonne after rising 77% over the past year.

The strong flows followed feverish buying when crude prices plummeted to the lowest in decades and robust domestic demand as the economy quickly recovered from the coronavirus pandemic. "This is a big hurdle".

China still faces many challenges, not least the tensions between Beijing and Washington and how they would play out under the new USA administration led by President-elect Joe Biden.

Chinese language GDP information are anticipated to indicate progress picked as much as an annual 6.1% final quarter, from 4.9% within the third quarter.

Retail sales growth slowed to 4.6% in December from 5% in November. "Despite the latest dip in retail sales, we see plenty of upside to consumption as households run down the excess savings they accumulated a year ago", said Julian Evans-Pritchard, senior China economist at Capital economics. Exporters took market share from foreign competitors that still faced anti-virus restrictions.

But the emerging new clusters of coronavirus in the country prompted China to strengthen controls, casting a shadow over higher growth projections for this year.

Retail sales, whose recovery has lagged behind that of industrial activity, shrank 3.9% for the full year with consumers wary of spending as the pandemic lingered.

China's pig herd rose to 406.5 million heads at the end of December, from 370.39 million at the end of September.

The gross domestic product (GDP) numbers, due early on Monday, will be closely watched around the world, especially as many countries continue to grapple with the COVID-19 pandemic and China battles resurgent cases in parts of the country.

Related Articles