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Comic: China’s Economy the Only Bright Spot in 2020 as Other Countries Struggle

EconomyOct 20, 2020 09:59
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By Geoffrey Smith

Investing.com -- China, which unleashed the worst economic contraction since the Great Depression by allowing the Covid-19 virus to spread, has emerged from the crisis in better shape than virtually any other economy in the world.

The International Monetary Fund said last week it expects the Chinese economy to grow 1.9% this year, while every other G20 economy is set to shrink.

New numbers this week out of Beijing suggest that that might even be too pessimistic: Chinese gross domestic product was up 4.9% from a year earlier in the third quarter and was up 2.7% from the second quarter. Encouragingly, both industrial production and retail sales ended the quarter with growing momentum, posting their best growth since the pandemic struck.

Even allowing for China’s traditional ability to generate the kind of GDP statistics it wants, the picture is too clear to ignore: the draconian clampdown on public life in January and February has allowed a more vigorous recovery than anywhere else in the world.

It isn’t just ageing, mature markets like Europe and Japan that look pale and weak by comparison. India – whose medium-term potential growth rate is comparable to China’s – is expected by the IMF to have the worst GDP decline of any large economy this year, thanks entirely to its inability to stop the virus spreading through its tightly-packed cities and sprawling, under-resourced hinterland. Its 7.6 million cases are second only to the U.S.’s 8.2 million.

Brazil’s GDP is likewise seen shrinking by 5.2% this year and recouping barely half of those losses next year. India and Brazil have the world’s second- and third-highest death count from the virus, and shortcomings in data collection suggest that the virus’ actual toll in those countries is even higher than official figures suggest.

The varying degrees of success in fighting the virus are also reflected in the relative health of those countries’ stock markets and currencies too.

Despite a drastic deterioration in relations with the U.S. and India, another important trading partner, China’s yuan rallied to a two-year high against the dollar earlier in October, while the Shanghai and Shenzhen SZSE index is the only major index in the world that has outperformed the Nasdaq so far this year. All of the major Chinese stock indices are up in year-to-date terms, whereas India’s Nifty and Brazil’s Bovespa are down 2.2% and 15%, respectively. Russia’s RTSI meanwhile is the worst performing of all the big emerging market indices, with a 27% drop.

Comic: China’s Economy the Only Bright Spot in 2020 as Other Countries Struggle
 

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Comments (10)
Mo Sa
Mo Sa Oct 20, 2020 19:50
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This pandemic proves that capitalism is dead. Western populations are now crying out for government backed state aid just like China
Ru Ruisu
Ru Ruisu Oct 20, 2020 13:30
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The country transparency is none. They can’t even find the covid-19 “patient zero”, or just hidden the secret?? 😷
Ru Ruisu
Ru Ruisu Oct 20, 2020 13:14
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Make up the number as always. The whole country is a scam. 🤡
Mo Sa
Mo Sa Oct 20, 2020 13:14
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Stop buying all those Chinese goods
Voilet Ace
Voilet Ace Oct 20, 2020 13:14
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You phone is made in china
Intel lect
Intel lect Oct 20, 2020 12:44
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The Asia economies in the nextt decade will take over the world platform whilst you western states stupidly destroy each others economies paving way
Ru Ruisu
Ru Ruisu Oct 20, 2020 12:44
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Make up the number as always. The whole country is a scam. 🤡
Heng Jun Yap
Heng Jun Yap Oct 20, 2020 11:02
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proper government is so important for developing nations
Arif Sufyan
Arif Sufyan Oct 20, 2020 11:00
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easy to have a booming economy when u don't publicise the actual covid figures 🤡
Ah Choon Wong
Ah Choon Wong Oct 20, 2020 10:31
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No surprise! China has a responsible and adaptable goverment.
Sanjay Chaudhary
Sanjay Chaudhary Oct 20, 2020 10:20
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chaina have a real growth economic policy.
Brian Newman
Brian Newman Oct 20, 2020 10:20
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surprise surprise!!
Rajesh Dasari
Rajesh Dasari Oct 20, 2020 10:19
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China Virus....
Mo Sa
Mo Sa Oct 20, 2020 10:19
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why so bitter ?
 
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