In 2020, China's GDP grew by 2.3%.

Such data on Monday, January 18, was published by the State Statistical Office of the PRC.

As follows from the materials of the World Bank, the achieved figure was the lowest since 1976, but turned out to be higher than forecasted.

So, earlier, the organization's specialists estimated the growth of Chinese GDP at the end of 2020 at 2%, and experts of the International Monetary Fund (IMF) - at 1.9%.

At the same time, the Asian republic became the only major economy in the world that avoided falling amid the COVID-19 pandemic.

So, for example, according to a preliminary estimate of the IMF, as a result of the consequences of the coronavirus, the global GDP decreased by 4.4%, the US economy - by 4.3%, India - by 10.3%, Japan - by 5.3%, Germany - by 6%, and Russia - by 4%.

Recall that the first cases of coronavirus infection were recorded back in December 2019 in the Chinese city of Wuhan.

In February 2020, the number of cases in China approached 80 thousand, and the country's authorities were forced to impose strict quarantine measures.

As a result of restrictions and massive business shutdowns, China is facing a record drop in business activity.

According to the analytical agency Caixin, at the end of February, the corresponding PMI indices in the industry and services fell to 40.3 and 26.5 points.

The values ​​became the lowest ever observed.

Note that the PMI index reflects the real state of a particular industry.

A reading above 50 points indicates a positive economic situation, below 50 points indicates a stagnation in the sector.

Moreover, according to the results of the first quarter of 2020, China's GDP went into negative territory for the first time in 28 years and decreased by almost 7%.

However, already in the second quarter the economy grew by 3.2%, in the third - by 4.9%, and in the fourth, the growth rate accelerated to 6.5%.

In turn, the PMI indices of industry and services by the end of 2020 returned to pre-crisis levels, reaching 53 and 56.3 points, respectively.

The actions of the PRC authorities played a key role in the rapid recovery of the Chinese economy.

This point of view in an interview with RT was expressed by the Acting Director of the Institute of the Far East of the Russian Academy of Sciences Alexei Maslov.

According to the expert, the state has significantly reduced taxes, provided long-term loans at low interest rates to private enterprises, and also provided free access to many electronic platforms.

At the same time, import and export tariffs were lowered to revive trade in the country.

“The country produced a large number of goods in a short time, which helped to avoid inflation.

Plus, China has started investing in major infrastructure projects, namely the construction of railways, power grids and more.

The state also actively invested in startups, many of which ended up earning money during this period instead of going bankrupt, ”Maslov added.

As follows from official statistics, in 2020, the total volume of investment in China increased by 2.9% compared to 2019.

At the same time, investments in high-tech services and manufacturing grew by 9.1% and 11.5%, respectively.

In the last months of 2020, additional support to the PRC economy was provided by the increased demand for Chinese products from a number of states that have just begun to recover from the consequences of the pandemic.

Alexander Rozman, senior analyst at Forex Optimum, told RT in an interview about this.

“The supply of all kinds of household goods, from furniture, toys, household appliances to electronics, has grown significantly.

In addition, there was a high demand for medical devices and pharmaceuticals.

Exports of these particular groups of goods from China grew the most in 2020 - by 22% and 31%, respectively, ”explained Roseman.

Acceleration in Chinese

According to the World Bank, China's GDP could grow by 7.9% in 2021.

At the same time, IMF experts predict an increase of 8.2%.

The last time the country's economy showed similar rates back in 2011-2012.

According to Aleksey Maslov, China will be able to ensure economic growth near 8% due to the double circulation strategy announced by the authorities.

As part of the initiative, Beijing intends to focus specifically on the development of its domestic market.

At the same time, the level of openness of the PRC economy to external partners will have to increase.

“According to the idea, banks issue a lot of loans and do not demand their quick repayment.

As a result, money goes into circulation and production.

At the same time, China is noticeably opening its market to import not only goods, but also services, ”the expert explained.

  • People wearing face masks following the coronavirus disease (COVID-19) outbreak walk along Nanluoguxiang alley, in Beijing, China January 16, 2021

  • Reuters

  • © Tingshu Wan

According to Alexander Rozman, the growth of business activity in China will accelerate the recovery of other East Asian countries.

So, due to the growth of imports, the PRC will stimulate production in neighboring states.

“China is not only a huge export factory, but also a huge sales market.

This means that the growth of the PRC's economy provides demand for a large number of other states.

In the Asian region, these are Japan, South Korea, Malaysia, Vietnam, Thailand, Singapore.

From these countries alone, China imports goods worth almost $ 560 billion a year, ”the expert explained.

The growth of the Chinese economy plays a positive role for Russia as well, Alexey Maslov is sure.

As the expert recalled, even in the context of a pandemic, countries still remain major trading partners.

“The expansion of the PRC economy will allow the country to buy more of our products.

With the right strategy, Russia has every chance to significantly expand its presence in the Chinese markets, ”the expert concluded.