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COVID-19: China confirms economic bounce-back with 2.3% GDP growth

The world's second biggest economy has recovered after the pandemic took its toll during the first quarter of the year.

Employees work at a workshop of Aiways Automobiles Co Ltd., during a government-organized media tour in Shanghai, following the coronavirus disease (COVID-19) outbreak, China January 14, 2021.
Image: China's economy grew at the slowest pace since 1976
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China has confirmed its bounce-back from the coronavirus crisis as official figures revealed its economy grew by 2.3% last year.

The expansion was the weakest since 1976 after the pandemic sent GDP into reverse at the start of 2020.

But the country where COVID-19 was first identified will be the only major global economy to have avoided contracting during a year defined by the catastrophic impact of the outbreak.

People wearing face masks following the coronavirus disease (COVID-19) outbreak walk past shops along Yandaixiejie alley, in Beijing, China January 16, 2021.
Image: Retail sales fell for the first time since 1968

Economists expect China's expansion to pick up further pace this year with growth of more than 8%.

Figures from the country's national bureau of statistics showed GDP shrank by 9.7% in the first quarter before bouncing back to 11.6% in the April-June period then growing by 3% and 2.6% in the third and fourth quarters.

Retail sales growth slowed towards the end of the year - falling short of analysts' expectations and leaving them 3.9% lower for 2020 as a whole, in the first decline since 1968.

But exports have picked up pace as manufacturers stepped up production to supply goods to many countries crippled by the pandemic.

More from Covid-19

Strict restrictions imposed in China helped it to contain the outbreak much more quickly than other countries.

The world's second biggest economy - also navigating through a trade war with the US - has been helped too by central bank stimulus measures.

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The state of the UK's pandemic-hit economy

Some analysts cautioned that a recent rebound in COVID-19 cases in the northeast of the country could impact activity and consumption in the run-up to next month's lunar new year holidays.

China's 2.3% growth for the year compares with projections that other major economies will all report declines for 2020, with the UK expected to have experienced its worst collapse for three centuries.