China’s economy is likely to return to modest growth in the second quarter after a record contraction, as lockdown measures ended and policymakers stepped up stimulus to combat the shock from the coronavirus crisis, reported Reuters.
Analysts polled by Reuters forecast GDP to have grown 2.5% in April-June from a year earlier, reversing a 6.8% decline in the first quarter – the first contraction since at least 1992 when official quarterly GDP records started.
However, the expected growth rate would still be the weakest expansion on record. On a quarterly basis, GDP is expected to have grown 9.6% in April-June, compared with a decline of 9.8% in the first quarter.
Data on Tuesday showed the country’s imports in June rose for the first time this year as stimulus boosted demand for building materials, while exports also edged up as overseas economies reopened after lockdowns.