According to yesterday’s data, China’s economy returned to growth in the second quarter, in one of the world’s earliest signs of recovery from the fallout of the coronavirus pandemic. Data showed that gross domestic product grew 3.2 per cent in the second quarter on a year over year base, exceeding analysts forecast by 0,7 per cent.

In April, China eased lockdown measures in Wuhan, the original centre of the virus, but has continued to enforce strict rules on testing and closed off the country to most international flights. Despite local outbreaks of the virus, including last month in Beijing, new daily cases have typically remained in the tens per day in the second quarter as the pandemic has gathered pace in the US, Europe and Latin America.

The Chinese state has supported industrial activity over recent months, in part through increasing the amount local governments can borrow for infrastructure projects. Rising GDP in the second quarter was supported by strong industrial production, which increased by 4.4 per cent compared with the same period a year earlier and rose in each of the past quarter.

Source: Investing