China’s gross domestic product was back on track today with the news that it reportedly grew by 3.2 percent over the second quarter of 2020. Exports and imports both rose in June, following a 6.8 percent drop over the three previous months. The result beat the median forecasted increase of 2.6 percent drawn from a Wall Street Journal poll of economists. Yet the win was dampened somewhat since consumers had remained cautious during the quarter, with retail sales dropping by 1.8 percent — more than projected.
Quick and decisive state economic management, not setting a target for this year’s GDP, and boosting the country’s job market, has fool-proofed China’s growth in the aftermath of COVID-19. While a second outbreak isn’t out of the question for China, its economy has been rewarded with one of the first post-pandemic signs of global reform. Outside of the Mainland, economies from the US and UK to Japan are looking a lot less confident. Given the delay in restarting global trade, one question remains: Can China’s growth be sustained given that it hinges on the recovery of the rest of the world? Despite a strong domestic recovery, the ability of this slippery virus to continue confounding countries could eventually slow China’s gains.
The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.