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'China on solid path of economic recovery from pandemic shock'
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IANS | 24 Oct, 2020
The Chinese economy is staging
impressive recovery from the Covid-19 pandemic shock, bolstered by the
country's effective control of the novel coronavirus, a renowned US
economist said.
"The third quarter GDP was encouraging," which
does show that "China is on a solid path of economic recovery following
the Covid-19 shock in the early months of this year," Stephen Roach,
senior fellow at Yale University's Jackson Institute for Global Affairs,
told Xinhua .
"The encouraging pieces of it have to do with the
contribution to economic growth made by Chinese consumers, who clearly
were most adversely impacted by the lockdown early this year," said
Roach, who was formerly chairman of Morgan Stanley Asia and chief
economist at Morgan Stanley, a New York-based investment bank.
China's
gross domestic product (GDP) expanded 4.9 per cent year on year in Q3,
faster than the 3.2-per cent growth seen in Q2, showed official data
earlier this week.
Also, in the latest World Economic Outlook
report released earlier this month, the International Monetary Fund
projected China's economy to grow by 1.9 per cent in 2020, 0.9
percentage points above the IMF's June forecast, making it the only
major economy that will see positive growth this year.
"The most
impressive aspect of the economy's performance is that the highest
priority was given to containing the outbreak of Covid-19," said Roach.
"China's
approach to public health is strict, it's disciplined," which is "a
model of what can be done to contain the impacts of a disease outbreak
in a major economy," he said, adding that "it's a model that the rest of
the world needs to take very seriously as an example of what is missing
today and what they could do."
A shock like a pandemic does not
just go away, instead, it takes very rigorous, focused and disciplined
public health actions to curtail the spread and bring the disease under
control, said the famed Yale scholar.
"The lesson from China is
(that) they addressed the shock first of all and that was the principal
focus of the government's efforts in the early months of 2020. And then
by containing the shock, they were able to utilize policy tools, fiscal
and monetary, to then stimulate the aggregate demand after the shock had
been controlled," said Roach.
"That's an important lesson for
other economies around the world," as "massive fiscal and monetary
stimulus could be undermined if you don't have effective control over
the disease," he noted.
The economist said he expects China to
see "further progress in economic growth in the fourth quarter," and "it
will be a positive number" for the year as a whole.
Meanwhile, he cautioned that challenges remain, especially given the complexity and uncertainty of the pandemic.
Further
efforts in public health, health security and the social safety net,
and continuing down the road of reforms, are among the aspects in which
China could continue their endeavor so as to maintain the economic
momentum and build up resilience, according to Roach.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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