Economic impact of COVID-19 on China
China is the origin country of the COVID-19 pandemic. Due to the outbreak, the global economy has been impacted, and China’s economic situation has been affected by both internal and external facts. Analysts predicted that China would lose its place in 2021 GDP ranking, but they were proved wrong.
Statistics before and during COVID-19
Before the outbreak due to COVID-19, China’s economy was known for its strength. We could recognize this through the per capita GDP (Gross Domestic Product) of the Popular Republic of China, which exceeded 10000 US dollars for the first time. The country has broken its records with an increase of more than 6% in 2019. Then, if things were to follow the same path, without the COVID-19 pandemic, China may have become the first economic power in the world, far before the U.S.A. since last year.
During the starting time and rebounds of the pandemic situation in China, the economy has been weakened. In February 2020, China’s PMI index was 28,9%, showing that the giant’s economy was at a critical spot. We could notice the slowdown and even the stoppage of the overall production and supply activities that greatly participated in the country’s economic strength.
However, China’s economy is now more robust than ever. Since late 2020, GDP has increased by 6,5% thanks to industrial production. This makes China the first and only one country to take over COVID-19 pandemic and still manage to make economic growth.
How did China get back on track?
China’s response to the pandemic is spectacular. As soon as the severity of the threat was assessed, the government automatically mobilized all resources and capabilities. This mobilization helped to stop the spread of the virus within 10 weeks. Moreover, the Chinese government has put into place an effective strategy that allows prevention, control and rapid mobilization of local authorities for local epidemics. As soon as a case is detected, mass tests are immediately scheduled and high-risk areas are confined. The most fearsome aspect of the pandemic was then kept in check, allowing money-making activities to quickly restart.