China has become the first major economy to recover from the Covid-19 pandemic. It grew 4.9% between July and September from a year earlier, up from a 3.2% annual rate in the previous quarter, according to government data.
The growth rate was slightly lower than the 5% or more forecast by analysts, but represents a major reversal from the first quarter of this year when the economy shrank by 6.8% – China’s first contraction since 1992 when officials began keeping quarterly GDP data.
China’s central bank governor Yi Gang said on Sunday that officials predict growth of about 2% for 2020. China is expected to be the only G20 economy to grow this year. The world economy as a whole is expected to shrink by 4.4%, according to predictions from the International Monetary Fund, which would be the steepest downturn since the Great Depression.