Thanks to Chinese market, global economy experiences upswing
The gross domestic product (GDP) of China clearly shows that the economy has almost overcome the effects of the Corona pandemic. In the first quarter of this year, a record growth of 18.3 percent, year-on-year, was recorded. This is the highest growth since measurements began 30 years ago. Thanks to China, the global economy is experiencing an upswing, as it did during the 2008 global financial crisis, and global companies operating in the Chinese market have recently seen high sales.
Foreign trade strengthens most
A large part of the growth was strengthened by foreign trade. Due to the pandemic, coronatests and protective masks were in demand worldwide. Likewise, demand for hardware equipment for the home office has increased, keeping factories in China working at full capacity.
Another reason for the strong growth is also the impact of the economy in the first quarter of last year. This was still the period when the entire Chinese economy was almost completely shut down.
Full-year growth of 6% can be expected
To curb the virus, the Chinese government decided to implement a so-called “zero-covid strategy”. This included a sharp lockdown and intensive entry controls. As a result, very few infections with the virus are registered today. The International Monetary Fund (IMF) forecasts full-year growth of 8.1 percent for China’s economy. However, the government only provided a forecast of 6 percent, as the situation still appears unpredictable.