China’s economy returns to growth in Q2 2020

China’s real GDP returned to growth in Q2 2020 as economic activity resumed following the measures taken to prevent the spread of COVID-19. Following a sharp fall of 6.8% y/y in Q1 2020, real GDP increased by 3.2% y/y in Q2 supported by production of agricultural crops and hi-tech equipment manufacturing, with factories reopening and receiving government support.

Consumption of daily necessities such as food, beverages, grains and oils has picked-up after it was affected by the lockdown to address the COVID-19 pandemic. Sales of consumer goods, such as cosmetics, sports and recreational articles have continued to grow, indicating that consumer confidence is reviving. 

Further data and analysis on China’s economy is available on the CEIC China Economy in a Snapshot – Q3 2020 report.