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How China left India and the United States behind on the economic front
On Monday, when india's GDP figures for the first quarter of the current fiscal came to an eye, concerns about the economy proved to be true. Growth declined by 23.9 per cent between April and June.
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The growth of all major sectors of the economy remained negative and the construction, manufacturing sector was seen to be in a bad situation. These new GDP figures in India have historically been the biggest decline after nearly 24 years.
However, it is also noteworthy that these GDP figures are in the early months of the lockdown imposed to control the corona virus.
But the concern is that India's GDP has declined the most among the world's major economies. That is to say, the epidemic has damaged the economy of all countries, but India's condition is looking much worse.
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The situation in the United States, most affected by the epidemic, is better than India. While the GDP rate was -10.6, Germany's -11.9, Italy's -17.1, France's -18.9, Britain's -22.1 and Spain's GDP were the closest to India,-22.7 per cent.
But China's growth rate positive
But China's growth rate has been positive in this era of economic crisis. I.e. China is the first major economy, which is growing despite the outbreak of the epidemic.
China claims that its GDP growth in the april-June quarter has been 3.2 per cent for the same period. China released its quarterly data in mid-July.
China's factory output rose by 4.4% as per the data. The online
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retail sale saw a growth of 14.3 per cent. While retail sales declined by 3.9%, exports also registered a growth of 0.4%.
After looking at the positive figures of GDP in China, the first question comes as to how did China do it? When all major economies are suffering ahead of the corona epidemic, how is China's economy performing well?
The corona virus epidemic started from China itself. There was the beginning of this epidemic in December. China was the first economy to start the shutdown and recovery process.
Recovery started after March
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China had started the recovery process since late March, when the ruling Communist Party announced that the disease was now under control. After which the lockdown was removed there. Factories and stores were reopened.
When the world was fighting the corona virus, the Chinese government announced on March 24 that a partial lockdown would be lifted in Wuhan, the center of the corona epidemic, from April 8.
While the travel ban in other parts of Hobe province except Wuhan was lifted from midnight of March 24. By the time sanctions were being lifted in China, the virus had spread to 186 countries in the world.
However, it is to be noted that Wuhan was sealed in mid-January. China's GDP growth declined by 6.8% in the January-March quarter. This was China's worst performance since the mid-1960s.
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But china's economy improved
dramatically after sanctions eased, the National Bureau of Statistics said in a statement, "the National Bureau of Statistics said in a statement. "The pace of the country's economy rose again after it was lower in the first half of 2020.0 "
Although China has started reporting quarterly growth figures since the beginning of 1990, China's (GDP data for the April-June quarter) is the weakest figure ever since.
After the april-June quarter GDP data was released, economists said the recovery of China's economy will continue. Marcella Chow of J.P. Morgen Asset Management said, "0 "We expect to see continuous improvement in the next quarters.0 "
Investment bank HSBC has estimated that China's economy will grow by 5.4% in the next quarter and up from 6.2 percent in the next quarter. That will return China's growth to the pre-covid level.
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