(Drivebycuriosity) - The world is still fighting the COVID-19 Pandemic. Rising numbers of new corona cases in Europe & the US challenge the recovery of the global economy. Fortunately the situation in China is much better. The huge country reports daily just about 20 new cases (worldometers)!
( source )
China´s success on the corona-front allows the economy to recover faster than in the Western countries. Last night we learned that the Manufacturing PMI for China, which represents China´s industrial production, rose to 51.5 in September 2020 from 51 in the previous month and above market expectations of 51.2. "The latest reading pointed to the seventh straight month of growth in factory activity and the strongest since March as the economy recovered further from the COVID-19 shock" (tradingeconomics ).
The Non-Manufacturing PMI for China, which represents the service sector, increased to 55.9 in September 2020 from 55.2 a month earlier. "This marked the fastest growth in the service sector since November 2013 as the economy recovers further from the COVID-19 crisis" ( tradingeconomics).
China NBS Manufacturing PMI
China Non Manufacturing PMI
( source )
China`s economic growth is accelerating because the negative influences from the pandemic are further abating - sooner than in the US & Europe. China`s growth story is still intact, thanks to the secular catching-up process which is fueled by the still extreme income & wealth differences from the US and other Western nation standards, an ambitious & well educated population and ongoing economic reforms & huge investment into infrastructure ( driveby).
China`s economy is not yet big and strong enough to compensate fully the weaknesses in the rest of the world, but the recovery mitigates the global damage already and the country is getting stronger. I suppose that in the coming months China`s economy will gain more speed, helping the global economy even more.
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