over 3 years ago • 2 mins
So much for China’s slump: fresh data out on Monday showed the country’s economy grew by 4.9% in the third quarter versus the same time last year. Namasté 🙏
China’s economy grew by 0.7% in the first three quarters of 2020 combined. That’s slightly below analysts’ estimates, sure, but who’s judging: the Chinese economy has now regained all the ground it lost when the coronavirus lockdown brought the country to a standstill at the start of the year 🇨🇳 Put a lot of that down to its flourishing industrial sector, which represents 40% of its economy and grew almost 7% compared to a year ago. And there lies China’s not-so-secret weapon: the country’s services sector – which includes restaurants, stores, and other businesses hit particularly hard by the pandemic – only represents 50% of its economy, compared to the US and eurozone’s 70-75%.
Let’s not take anything away from China’s shoppers, mind you. Monday's data showed they’ve been more than happy to splash their cash, with retail sales growing by 3.3% in September compared to the same time last year – its second gain this year 🛍 Online sales, it might not surprise you to hear, have continued to roar: Chinese shoppers now do almost a quarter of their spending online, up from about a fifth last year.
China’s is the only major economy expected to grow this year, which might partly be because it was one of the first to wrestle with the pandemic 🦠 The good news is that its success gives analysts and investors a blueprint for economic growth going forward, as well as cause for celebration: the country’s steady growth means it’ll keep buying European and American products, even as coronavirus cases in those regions start to rise again.
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