China’s economy grows 3.2% in the second quarter after overcoming the coronavirus

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Paul M. DíezSEGUIRCorresponsal in Beijing Updated: Save Send news by mail electrónicoTu name *

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While the rest of the world is still standing, or in the medium gas by the coronavirus, China, where he started the pandemic, is already showing signs of economic recovery. Its Gross domestic Product (GDP) grew by 3.2% in the second quarter , and dodging the recession because he had fallen 6.8% in the first, when the epidemic broke out in Wuhan forced to cripple the country.

The official figures, leaked this Thursday, they improve the forecast of 2.4% that had been forecast by the agency Bloomberg. With these data, China has become the first power that seems to come out of the impact of the coronavirus , that is uncontrolled in the united States and outbreaks hinder the opening up of the economy in Europe and Japan. But the situation can change so quickly by such flare-ups, as we saw last month in Beijing with the focus already controlled in its biggest market, that the regime does not want pinched fingers and prefer to be cautious in their forecasts. So much so that, in the National Assembly held in may, the prime minister, Li Keqiang, not scored for the first time in decades its usual goal of economic growth.

according To the data released by the National Bureau of Statistics, industrial production rose 4.8% in June, four tenths more than in may, and at the level of what is expected. But retail sales, which are a key indicator of consumer spending and the confidence of the society, fell 1.8% year-on-year, though less than the 2.8% recorded in may and below the growth of 0.5% as calculated by Bloomberg, according to the newspaper “South China Morning Post”.

For its part, the investment in fixed assets, which includes expenditure on infrastructure, real estate, machinery and equipment, decreased by 3.1% in the first quarter, half of the fall registered in the first five months.

Although the official figures reflect an urban unemployment of 5.7% in June, half a point less than the peak of 6.2% reached in February, the reality will be much worse, because millions of people have lost their jobs in the big cities by the pandemic and have been forced to return to their villages. For this year, the authorities have proposed to create nine million urban jobs, whereas in 2019 were 13.5. Such a reduction is evidence of the indented labour that has stopped the epidemic, which has affected equally to less-skilled workers as a good part of the middle class that already abounds in the mega-cities in china. In sectors likely punished as the hospitality and restaurant industry, who are fortunate enough to retain their jobs have seen drastic salary reductions. In the face of uncertainty looming, the chinese families, already saving, are spending less yet.

as has been recognized by the prime minister himself during the National Assembly, the annual meeting of the Parliament’s organic regime, in China, there are 600 million people living with only one thousand yuan a month (125 euros). A minimum amount that reflects the huge social inequalities in this economic superpower in gross terms.