Bounceback


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By any measure, and allowing for any scepticism about the validity of the numbers, China’s economy is bouncing back fast, and is almost back to pre-Covid levels. According to the New York Times, “the Chinese economy surged 4.9% in the July-to-September quarter compared with the same months last year. The robust performance brings China almost back up to the roughly 6% pace of growth that it was reporting before the pandemic”.

Pointing out some of the benefits flowing on to other countries, the NYT reports that “Chinese companies are making up a greater share of the world’s exports, manufacturing consumer electronics, personal protection equipment and other goods in high demand during the pandemic. At the same time, China is now buying more iron ore from Brazil, more corn and pork from the United States and more palm oil from Malaysia. That has partly reversed a nosedive in commodity prices last spring and softened the impact of the pandemic on some industries”.

Whilst I appreciate that not everyone will be as excited as I am by these numbers, particularly those still in lockdown around the world, it surely provides some light at the end of the tunnel for countries still struggling with the coronavirus pandemic. And a reminder that China’s 400 million middle class consumers represents an important market for any post-Covid business recovery plan.


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