Record growth in China

China’s economy has largely overcome the Corona crisis – it grew by an enormous 18 percent in the first quarter. However, experts also see signs that the recovery is losing momentum.

By Ruth Kirchner, ARD studio Beijing China’s gross domestic product soared more than it has done in 30 years. As the national statistics office in Beijing announced, the economy grew by 18.3 percent in the first quarter compared to the same period last year. “We see a sustained and stable recovery in the first quarter,” said spokeswoman Liu Aihua. But she also warned of uncertainties in view of the global corona pandemic. The situation is not stable.

Economic stimulus programs are having an effect

The unusually strong growth in the first three months can be explained by the starting position a year ago. At the beginning of 2020, China came to an almost complete standstill due to the corona pandemic, and the economy collapsed. This is why the recovery is now being reflected all the more clearly in the growth figures. The government’s economic stimulus programs are also having an effect. China’s economic growth looks more modest when you compare the first quarter with the last quarter of 2020 – then the growth is 0.6 percent – and thus fell short of the expectations of many analysts. They used this number as evidence that China’s economic recovery is slowing down.

Products for the home office in demand

The spokeswoman for the statistics office also warned against expectations that are too high: the foundations for a recovery in the domestic market are not yet very solid, said Liu Aihua, and some service sectors and smaller companies are continuing to grow only very slowly. China’s export economy, on the other hand, is benefiting from the strong demand for products that are currently needed in the pandemic – including medical equipment or laptops and monitors for the home office.

A good sign for Germany

For the year as a whole, the Chinese leadership is targeting growth of more than six percent, the International Monetary Fund is even predicting more than eight percent. Germany’s export-oriented economy also benefits from this. German carmakers were recently able to post substantial profits in China.