-- China's economy is on track to a V-shaped recovery by returning to the pre-outbreak level, economists said, citing burgeoning signs of work resumption, industrial chains, and services sector.
-- The recovery of the world's second-largest economy is expected to boost the pace of other economies' restoration, as China has proposed a new development pattern of dual circulation, which underscores the domestic market as the mainstay while domestic and foreign markets can boost each other.
-- China's economic rebound is expected to further consolidate in the third and fourth quarters with a 2.5-percent to 3-percent year-end growth with more stabilizing measures and policy incentives.
by Xinhuawriters ZhangYiyi,DingYinghua,HuWenjia and XuXiaoqing
BEIJING, Aug. 9 -- China's economy, as shown by multiple mid-year indicators, has ridden out its downturn due to COVID-19 strains and bounced back to growth in the second quarter (Q2). Economists believe that the country's V-shaped recovery is only getting started.
In Q2, China's gross domestic product expanded by 3.2 percent year on year, reversing a 6.8-percent contraction in the previous quarter. China's fiscal revenue marked the first expansion this year by gaining 3.2 percent year on year in June, while the contraction of the retail sector declined markedly.
Workers check a production line at Lianyungang Economic and Technological Development Area in Lianyungang, east China's Jiangsu Province, July 16, 2020. (Photo by Geng Yuhe/Xinhua)
BACK IN THE GAME
"China's economy has gradually emerged from the slump and returned to the level it was roughly at prior to the outbreak, backed by the stimulation that has delivered burgeoning signs of work resumption, industrial chains and services sector," said Shao Yu, chief economist at Orient Securities.
Latest data showed that the purchasing managers' index (PMI) for China's manufacturing sector rose to 51.1 in July from 50.9 in June, remaining in expansion territory for the fifth month in a row, indicating stronger confidence of market entities.
"The steadily firming recovery points to the effectiveness of China's epidemic prevention and pro-growth policies to boost production and domestic consumption," said Sheng Hai, a macro analyst with China Industrial Securities.
His point was echoed by Steven Zhang, chief economist at Morgan Stanley Huaxin Securities. "China has its institutional advantages that enable a more agile and rapid response to public safety emergencies like COVID-19."
