Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

China’s Year-on-Year Growth Hits Record but Quarterly Growth Slows

Economic IndicatorsApr 16, 2021 12:34AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – China’s economy soared in the first quarter on a yearly basis. Consumer spending also strengthened, suggesting a more balanced recovery on a quarterly basis from the investment and export-fueled rebound from 2020’s COVID-19-induced lockdowns.

Economic data released earlier in the day said that the GDP for the first quarter grew a record 18.3% year-on-year and 0.6% quarter-on-quarter in March. Both were lower than the 19% and the 1.5% growth in forecasts prepared by Investing.com.

Yearly growth soared from the 6.5% growth recorded in the first quarter of 2020, although the figures were skewed by the comparison with those from 2020, when China imposed a strict lockdown as the COVID-19 pandemic spread.

The country’s economic recovery has progressed at a remarkable speed, with the losses from a recorded contraction in the first quarter of 2020 all but recovered by the end of September 2020. Strong industrial output and robust exports as COVID-19 fueled demand for Chinese-made medical goods and electronic devices also gave the recovery a leg up.

“We are seeing a bit more balanced recovery in the Chinese economy,” UBS AG chief China economist Wang Tao told Bloomberg.

As monetary and fiscal policy starts to normalize, property and infrastructure investment are set to slow in the next few quarters, “that early pickup in the construction industry is going to give way to more household consumption,” she added.

Meanwhile, the quarterly growth, a better reading of the economy’s momentum, was slower than the 2.6% growth recorded in the fourth quarter of 2020. Wang credited the slower growth to a fresh COVID-19 outbreak at the beginning of 2021, the subsequent travel restrictions over the Lunar New Year holiday in February and a lack of additional fiscal stimulus.

However, policymakers are wary of the increasing pace of economic recovery indicated by stellar yearly growth in GDP, which is also leading to rising inflation and soaring debt levels. The government has signaled a scale back in fiscal and monetary stimulus and is also tightening regulatory oversight in lending and real estate among other sectors.

Meanwhile, the unemployment rate stood at 5.3%, slightly down from the previous reading of 5.5%.

China’s Year-on-Year Growth Hits Record but Quarterly Growth Slows
 

Related Articles

U.S. wholesale inventories rise solidly in March
U.S. wholesale inventories rise solidly in March By Reuters - May 07, 2021 1

WASHINGTON (Reuters) - U.S. wholesale inventories rose sightly less than initially estimated in March as sales surged amid robust demand. The Commerce Department said on Friday...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email