China’s Economy to See Slow Recovery Post-Coronavirus: Reuters Poll

A recent Reuters poll indicates that economic activity in China has started picking up after the extended lockdowns over the coronavirus

China's Economy to See Slow Recovery Post-Coronavirus: Reuters Poll

A recent Reuters poll indicates that economic activity in China has started picking up after the extended lockdowns over the coronavirus outbreak, however, the risk of recession still remains due to external conditions. In case the global economy takes longer to recover in the aftermath of the pandemic, China’s trade-reliant economy could very well see a contraction past Q1 2020.

Economists surveyed by Reuters forecast that China’s economy could grow at around 1.3% YoY in Q2 this year, after contracting by 6.8% in the previous quarter. For the entire year, China’s GDP is expected to come in at a mere 1.8%, the weakest rate of economic growth seen since 1976.

In the last edition of the poll, economists had forecast 2020 GDP at 2.5%, but have since trimmed it lower on account of heightened uncertainty about consumption picking up after the pandemic. The worst case scenario pegs economic growth at just 0.8%, but on a positive note, 2021 could see growth rebound as high as 15.8%.

Economists have highlighted the risks of a possible second wave of infections across China as the economy slowly starts to reopen. In addition, despite social distancing measures still in place, economic recovery to pre-pandemic levels will take a lot longer than previously anticipated.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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