On Wednesday, China’s Gross Domestic Product (GDP) figures showed the Chinese economy’s return to growth during April to June.
The world’s second-biggest economy, following a record slump of 6.8% in the first three months of the year during coronavirus lockdowns, grew by 3.2% in the second quarter.
The released figure of 3.2 % is higher than what experts had predicted.
The growth illustrates a V-shaped recovery, which is, a sharp fall in GDP followed by a quick recovery.
This quick recovery allows China to avoid a technical recession, a term referring to two consecutive periods of negative GDP (growth).
The rising GDP figures seem to be a result of the Chinese government’s stimulus measures including tax breaks amongst other measures to help boost the economy.
Chines industrial production data shows growth whereas the country’s retail sales haven’t recovered as quickly as experts had hoped.
One of the biggest challenges for the Chinese government would be getting people spending again.
The rise in GDP figures come amid tensions with the US- especially over Hong Kong, which is why some economists are unwilling to call the GDP figures a V-shaped recovery just yet.
For the first time since 1990, when China began recording GDP targets, the Chinese government announced in May that it would not set an economic growth goal for 2020 due to the coronavirus pandemic.