Record growth in the first quarter: China’s economy storms out of the crisis

Record growth in the first quarter
China’s economy is storming out of the crisis

Since China seems to have the corona virus under control, the economy is also booming. And how: In the first three months there was a record growth of 18.3 percent. That also helps German companies.

China’s economy has largely overcome the corona crisis and started the new year with record growth. As the Beijing statistics office announced, the second largest economy grew by 18.3 percent in the first three months compared to the first quarter of the previous year. It is the biggest jump since the quarterly evaluation began a good 30 years ago.

The unusually strong growth can be explained by the fact that the Chinese economy collapsed last spring due to the corona pandemic. At that time, the most populous country in the world almost came to a standstill for several weeks.

China’s government pursued a “zero covid strategy”: a rigorous lockdown and strict entry controls meant that – apart from minor local outbreaks – only very few corona cases have occurred for a year now. Since then, the economy has been on a recovery course.

Foreign trade particularly strong

The International Monetary Fund (IMF) estimates that the economy could grow by a further 8.1 percent this year. The Chinese government is more cautious and set its official growth target at the People’s Congress that has just ended in Beijing at a value of “over 6 percent”.

Strong foreign trade, in particular, recently got China’s economy going. China’s factories were in full swing to export medical goods such as corona tests and protective masks around the world. New laptops and other home office equipment often come from China. In addition, domestic demand has increased, to which the government had contributed with economic stimulus programs.

As in the global financial crisis in 2008, China is helping to give the world economy new impetus. German car manufacturers and many other companies that operate on the Chinese market have recently been able to look forward to lavish profits there. Industry President Siegfried Russwurm therefore recently named China at the Hanover Fair, alongside the USA, as the most important economic engine.