China leads in global economic recovery
Around the globe, numerous economies are struggling to contain the spread of Covid-19 within their borders. Initial lockdown attempts did slow the spread, however this has led to rampant economic decline, as effective post lockdown measures have struggled to reclaim the losses seen during the lockdowns. Following tough early measures to control the spread of the pandemic, through strategic economic recovery efforts, China has managed to achieve a 3.2 percent GDP growth in Q2, whilst other major economies such as those within the EU experiencing record declines, with the Euro area recording a 12.1 percent decline.
Key Economic Indicators
The consumer price index (CPI) rose by 2.4 percent year-on-year (y-o-y) in August 2020, 0.3 percent lower than July’s 2.7 percent. The producer price index (PPI) fell by 2 percent y-o-y, following a 2.4 percent decline in July. Food prices rose 11.2 percent in August, down from the 13.2 percent increase in July. Meat prices increased 42 percent, with pork increasing 52.6 percent in August, compared to the 85.7 percent increase in pork prices in July. Grain prices rose at 1.5 percent. Non-food related items have also increased, with flights increasing 7.2 percent y-o-y, and hotels by 2.1 percent y-o-y.
PMI continues expansion during China’s recovery
China’s official purchasing manager’s index (PMI) continued its expansionary growth with the August reading of 51, following a close figure of 51.1 in July. China’s manufacturing began the year battered with factory closures due to pandemic restrictions, which was followed by reduced export orders and then flooding in the southern provinces. However, continued expansion of the sector shows positive movements for China’s recovery.
China’s International Fair for Investment and Trade successfully held
The China International Fair for Investment and Trade (CIFIT) was held over four days from 8 to 11 September in Xiamen in eastern China’s Fujian province. Despite global uncertainty around the safe way to hold large conferences and events, China has implemented measures to ensure attendee confidence and health and safety, as seen at CIFIT 2020. Delegates from 42 countries attended the event, with good representation from African delegates such as South Africa.
“This article is produced by Axis Group and is published in The Econometer section of ChinAfrica magazine (September 2020), an English and French language monthly publication that provides news, views and analysis on all things China, Africa and China-Africa relations.”