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| Coronavirus: Chinese economy bounces back into growth | Coronavirus: Chinese economy bounces back into growth |
| (32 minutes later) | |
| China's economy grew 3.2% in the second quarter following a record slump. | China's economy grew 3.2% in the second quarter following a record slump. |
| The world's second biggest economy saw a sharp decline in the first three months of the year during coronavirus lockdowns. | The world's second biggest economy saw a sharp decline in the first three months of the year during coronavirus lockdowns. |
| But figures released on Wednesday show China's Gross Domestic Product (GDP) returned to growth during April to June. | But figures released on Wednesday show China's Gross Domestic Product (GDP) returned to growth during April to June. |
| The numbers are being closely watched around the world as China restarts its economy. | The numbers are being closely watched around the world as China restarts its economy. |
| The figure is higher than experts were predicting and points towards a V-shaped recovery - that is, a sharp fall followed by a quick recovery. | |
| It also means China avoids going into a technical recession - signified as two consecutive periods of negative growth. | It also means China avoids going into a technical recession - signified as two consecutive periods of negative growth. |
| The bounce-back follows a steep 6.8% slump in the first quarter of the year, which was the biggest contraction since quarterly GDP records began. | The bounce-back follows a steep 6.8% slump in the first quarter of the year, which was the biggest contraction since quarterly GDP records began. |
| The country's factories and businesses were shutdown for most of this period as China introduced strict measures to curb the spread of the virus | The country's factories and businesses were shutdown for most of this period as China introduced strict measures to curb the spread of the virus |
| The government has been rolling out a raft of measures to help boost the economy, including tax breaks. | The government has been rolling out a raft of measures to help boost the economy, including tax breaks. |
| Is this a V-shaped recovery? | |
| Analysis by Mariko Oi, BBC News, Singapore | |
| The Chinese economy managed to grow stronger than expected as the economy emerged from the lockdown. | |
| All the stimulus measures announced by the authorities seem to be working - with factories getting busier, evident in growth in the industrial production data. | |
| But one sector that hasn't recovered as quickly as they had hoped is retail sales. | |
| They still fell in the second quarter - and getting people spending again will remain a challenge. | |
| And just as the economy starts to recover, tensions with the US are flaring up - especially over Hong Kong. | |
| That is why some economists are reluctant to call it a V-shaped recovery just yet. | |
| A research note from Deutsche Bank said the "V-shaped recovery" was "largely completed". | |
| "Consumer spending is still below its pre-Covid path, but the remaining gap is largely concentrated in a few sectors - travel, dining, leisure services-- where rapid recovery is unlikely," it added. | "Consumer spending is still below its pre-Covid path, but the remaining gap is largely concentrated in a few sectors - travel, dining, leisure services-- where rapid recovery is unlikely," it added. |
| In May, China announced it would not set an economic growth goal for 2020 as it dealt with the fallout from the coronavirus pandemic. | In May, China announced it would not set an economic growth goal for 2020 as it dealt with the fallout from the coronavirus pandemic. |
| It is the first time Beijing has not had a gross domestic product (GDP) target since 1990 when records began. | It is the first time Beijing has not had a gross domestic product (GDP) target since 1990 when records began. |
| For the first six months of the year, China's economy fell 1.6%, its National Bureau of Statistics said. | For the first six months of the year, China's economy fell 1.6%, its National Bureau of Statistics said. |