China's Economy Grows by 18.3% in 1st Quarter Despite Covid-19 Challenges
- China's 18.3% economic growth in the first quarter of 2021 is the highest recorded since 1992 when it began recording official statistics
- The double-digit growth in economic expansion was driven by a surge in retail sales, industrial production and investment in fixed assets
- The Internation Monetary Fund (IMF) had in January revised its economic growth for China to 8.4%
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China's economy grew by 18.3% in the first quarter of 2021 despite the challenges posed by the Covid-19 pandemic.
Source: UGC
According to a report by CNN, the growth was the strongest ever posted by the East Asian country since 1992 when it began recording the statistics. The double-digit growth in economic expansion was driven by a surge in retail sales, industrial production and investment in fixed assets.
According to economists, the jump would see China record an overall economic growth of between 8% and 9%, surpassing the government's projected target of 6%.
The increase in retails sales in the first quarter of 2021 was boosted by the Chinese government's move to ease Covid-19 restrictions, including allowing its citizens to celebrate the Lunar New Year holidays.
Trade was also another sector that performed well during the period under review. In this sector, exports grew by over 31% while imports jumped by more than 38% compared to the same period in 2020.
The Internation Monetary Fund (IMF) had in January revised its economic growth for China to 8.4% due to what it termed as putting in place effective measures aimed at economic recovery.
China set to overtake the US as world's largest economy
Research done in December 2020 showed China’s economy was set to overtake the United States' economy faster than earlier anticipated after enduring the coronavirus pandemic better than Western countries.
According to the Research Firm’s World Economic League Table, China has also been predicted to become a high-income economy as early as 2023, while India is set to move up the rank to third position by the end of this decade solidifying Asia’s economic impact.
The onset of the global pandemic in December 2019 saw China as the first country to suffer as it was the first one to record the highest number of cases but its government's data has since reported that its economy rapidly recovered.
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Source: Briefly News
