China Says Economy Grew by 3.2% in Second Quarter

Pre-Advanced
2021-01-26

The country’s economic recovery comes as lockdowns meant to contain the COVID-19 pandemic begin to be lifted.

China’s  economy grew by more than 3% in the second quarter of the year, bouncing back from the first quarter’s reduction.

The country reported that its GDP jumped by 3.2% from April to June compared to one year ago, China’s National Bureau of Statistics said in a press release on Thursday, beating economists’ expectations that it would grow at 2.5%. China’s GDP took a huge hit in the first quarter of 2020, contracting nearly 6.8% compared to a year ago.

It was the country’s first economic decline since at least 1992, when quarterly records began, according to CNBC.

“Generally speaking, the national economy overcame the adverse impact of the epidemic in the first half gradually and demonstrated a momentum of restorative growth and gradual recovery, further manifesting its development resilience and vitality,” the release said.

China’s economic recovery comes as lockdowns meant to contain the COVID-19 pandemic begin to be lifted and Beijing rolls out measures to stimulate China’s economy. The government introduced measures meant to boost the economy, including fiscal spending and cuts in lending rates and reserve requirements of banks, CNBC reported.

While the country’s GDP is often looked at as an indicator of the health of the economy, experts have long been skeptical about the truthfulness of China’s reports.

According to the release, agricultural production “was sound” and grew by 3.8% in the entire first half of the year. Industrial production “recovered quickly” and high-tech manufacturing and equipment manufacturing both grew. Additionally, market sales gradually improved and online retail sales grew fast, according to the National Bureau of Statistics.

Today's Vocabulary

1. resilience (n)
the capacity to recover quickly from difficulties; toughness

2. adverse (adj.)
preventing success or development; harmful; unfavorable

3. fiscal (adj.)
relating to government revenue, especially taxes

4. measures (n) 
a plan or course of action taken to achieve a particular purpose

5. boost (v)
help or encourage (something) to increase or improve

6. momentum (n)
the quantity of motion of a moving body

QUESTIONS
  1. How  much percentage does China’s economy grow?

  2. What measures do the government introduce to boost the economy?

  3. According to National Bureau of Statistics, what sales grew fast?

  4. What does the national economy overcome?
DISCUSSION
  1. Do you think the Chinese economy will continue to grow? Why do you think so?

  2. China is now the second largest economy. Do you think they can hold it?

  3. What springs to mind when you hear the word country “China”?

  4. What are the big issues in China today?

  5. What do you think of China’s economic miracle?