China’s Surging Economy in 2021

There’s no question that 2020 and now 2021 have been tough years, financially speaking.  Most businesses have had downfalls and nations are facing economic struggles.  The exception of this downturn as far as the data is concerned?  China!  Let’s take a look at the figures in detail and get a feel for just what it all means.

The best way to understand how this nation has managed to come out of the global pandemic is through the numbers.  Just in the first quarter of 2021 alone, the growth is all the way up to 18.3% when looking specifically at the gross domestic product (GDP) rate.  This is a steep climb and it puts them in second place as far their economy is concerned.

The overall increase of their economy is sitting at our 6%, which is still a large increase after the 2.3% growth rate that came out of 2020.  Raising to 6% already in the first quarter of 2021, they’ve blown past the target China had set for the very same 6%.  This indicates that 2021 will be a very profitable year for China’s economy as a whole. 

While a lot of the details into that rate are kept quiet within China, the numbers do share the fact that a lot of growth comes from foreign trade.  Since there was so much of a downturn in 2020, especially with the trade wars with the US, this sharp increase in trade agreements has allowed for an influx at the start of this calendar year.

As well as an excellent start to the year in their economy and an increase in foreign trade, the unemployment rate has dropped, which will boost the economy further and help China’s numbers reach higher.  All of these factors give China the potential to have a secure and strong financial future as we start into the second quarter.

The other factor is that China is seeing their consumer spending and business investments catching up.  Since the job market and the incomes are rising, consumers are now able to continue to add to the economy and this creates a positive spike in China’s numbers.

While we are still early in the year,  financial leaders agree that China can have a very profitable year, perhaps reaching up to the growth rates of above 9% total that they had been enjoying previously to 2020.  However, it will also be a careful balancing act when it comes to recovering as a country from the shutdown due to the coronavirus and the ripple effect in other countries.

Regardless of what the year ends up displaying as far as the numbers go, you can’t dispute the fact that, on paper, China’s economic growth is looking up — literally — and it’s going to be interesting to see how other countries make out, in contrast.  All eyes will be on this bustling economy as we roll towards the start of the second quarter.