China Is Set To Report Positive GDP Growth For 2020
China is set to report its fourth quarter GDP on 18 January 2021. According to analysts polled by Reuters, China’s economic recovery would likely have accelerated. The average GDP growth forecast for the fourth quarter is 6.1 per cent, higher than the 4.9 per cent reported for the previous quarter. In consultation with your economics tutor Singapore in economics tuition Singapore, compare China’s GDP performance with its pre-Covid 19 data.
First Major Economy To Report Positive GDP Growth for 2020
China will be the very first major economy in the world to report a positive full year GDP growth for 2020 despite the severe disruptions caused by the unprecedented Covid 19 pandemic. Based on analysts’ average projection of a fourth quarter GDP growth of 6.1 per cent, its full year GDP growth will be 2.1 per cent. This is after a deep decline of 6.8 per cent in the first quarter of 2020 when the outbreak of Covid 19 pandemic sent Wuhan and other Chinese cities into a lock down. Together with GDP data, China will also release data on its December factory output, fixed asset investment and retail sales. To understand the significance of factory output, fixed asset investment and retail sales to an economy’s performance, you may sign up for economics tuition Singapore with a reputable economics tutor Singapore.
Export grew more than expected in the last three months of 2020, fuelled by a much stronger demand for personal protection equipment and other medical devices amid escalating Covid 19 cases globally. Purchase of commodities such as coal, copper, crude oil and iron ore also reached a new record. Analysts expect the sterling rebound to continue into 2021. Mr Edmund Quek is widely regarded as the best economics tutor Singapore. His economics tuition Singapore centre, Economics Cafe Learning Centre is conveniently located within five minutes’ walk from the Bishan MRT Station. To find out more about the economics tutor Singapore and his economics tuition Singapore, please visit www.economicscafe.com.sg.
New Outbreaks In Hebei And Heilongjiang
China has reported the highest number of new confirmed daily cases in the past 10 months. Shijiazhuang, a city of 11 million people was locked down in early January 2021. You may discuss with your economics tutor Singapore in your economics tuition Singapore class the various implications of another lock down in Shijiazhuang. On 12 January 2021, Langfang, a city of five million people, which is about 1.5 hours’ drive from Beijing issued a stay home order for seven days. Both cities are in Hebei province of China. On 11 January 2021, Shijiazhuang reported 39 new confirmed cases while Langfang reported one. As of 11 January 2021, total current confirmed and asymptomatic cases in Hebei province totalled 500.
On 12 January 2021, two regions in Heilongjiang province of China were also locked down, after reporting one new confirmed case and 36 asymptomatic cases the previous day. The lockdowns in Hebei and Heilongjiang are not expected to have a significant economic impact on the country’s GDP. In discussion with your economics tutor Singapore in economics tuition Singapore, explain why Hebei and Heilongjiang are not of economic significance to China. According to GDP data for 2019, Heilongjiang accounted for only one per cent of China’s total GDP while Hebei accounted for about 3.6 per cent. However, the proximity of Hebei from China’s capital city of Beijing is likely to present a threat. Beijing also reported one new confirmed case on 11 January 2021, following a few new cases recently. Stricter restrictions and mass testing had been implemented to tackle the possible resurgence.
Linda Geng
Economics Tuition Singapore @ Economics Cafe
Principal Economics Tutor: Mr. Edmund Quek