Post-COVID China Economy: What Does The International Data Say?

(CTN News) – COVID response has been optimized by China. International economic forecasts suggest that China’s economy will recover from the pandemic. Chengxi Yang explains.

Following the start of the COVID pandemic three years ago, China has reopened. Is the country’s economy sufficiently stable and solid to support a strong recovery? Here are some of the findings from international data.

YANG CHENGXI Beijing “Let’s start with inflation levels. While high consumer prices were a major concern for many Western countries last year, China’s inflation levels remained stable.

“How has China avoided the high inflation seen in some Western countries? One cause of inflation is supply and demand – for instance, when demand for goods exceeds supply. Take a look at this graph to see what happened in several Western countries from 2021 until last year.”

As opposed than China, several Western governments have implemented large stimulus packages to boost consumer demand. However, this came at a cost.

Consequently, when their supply was constrained due to the COVID situation, but their demand continued to be high due to the stimulus packages, inflation resulted.”

According to research conducted by the Federal Reserve, these measures had a positive effect, but they also contributed to inflationary pressures. In contrast, China did not experience the same difficulties.

YANG CHENGXI Beijing: “Now let us examine other data, such as economic production figures from the OECD.”

In early 2020, when COVID first emerged,

China’s trade and production were severely affected. However, these areas rebounded much more quickly than many other economies, closing the gap with past trends by 2021.

At the time, the government’s COVID policies ensured the overall health of the workforce, while sustaining the economy.

China Europe International Business School Professor of Economics ZHU TIAN stated, “China has returned to normal production as a result of effective control of COVID.” Therefore, there was quite a strong demand for imports from China, and China had the capacity to supply these products.”

During the period between 2020 and 2022, China’s imports and exports grew by an average of around 10 percent.

The final graph is as follows. The United Nations, which predicts slow global economic growth in 2023, predicts a rebound in China after the country eased restrictions on COVID.

The Chinese economy is expected to rebound significantly in 2022 following COVID controls that subdued demand for goods and services.

“Given that 2022 was a low base year for China, 2023 should be a good year for growth in China.” Professor ZHU TIAN, China Europe International Business School.

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