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Pandemic Boost To China’s Industry: GDP Growth Accelerates To 4.9%

by GoNews Desk 1 month ago Views 1524
Pandemic Boost To China’s Industry: GDP Growth Acc
China, once the epicentre of the novel Coronavirus outbreak, has become the first major economy to recover from the COVID-19 pandemic. The lockdown to prevent the virus spread caused economic turmoil worldwide but China is the first country whose economy will not shrink in 2020 but will grow. According to Chinese government data, the country's gross domestic product (GDP) has increased by 4.9% in the July-September quarter.

Obviously, this is a big achievement for China because the situation in India is the opposite.

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The Reserve Bank of India (RBI) Governor Shaktikanta Das has expressed fears that India's economy may shrink by 9.6% this year.

Statistics show that China is rapidly recovering from the economic damage caused by the pandemic. While China's GDP declined by 5.3% in the January-March quarter, it registered a 3.2% increase in April-June and improved further in July-September.

The International Monetary Fund (IMF) issued a forecast that China's GDP would increase by 1.9% this year. According to the Financial Times, the biggest reason for China's GDP boom is the government-backed industrial revolution. For example, industrial production grew by 6.9% in the September quarter. According to experts, the COVID-19 pandemic has actually given a boost to Chinese industry.

The growth in China's GDP underlines that reforms in the economy are possible only after the pandemic is brought under control. Not only did China prevent the spread of the virus, but they, unlike other major countries, have so far been able to prevent a second wave of infection.

America, which is the world's largest economy, is currently witnessing the third wave, while in countries like India, the first wave is weakening but still a large number of infected patients are being seen.

The results of the second quarter of the current financial year are due this month which will tell how much economic pressure India is under.

Simply put, India is still struggling on COVID-19 and economic fronts, while China is leading on both the fronts.

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