The Embassy of Switzerland in the People’s Republic of China released its China 2020 Economic Report, these are the most important conclusions of it:
- V-shaped recovery of the GDP growth: China’s GDP suffered in the first quarter (-6.4 percent) but seems to recover in the second (+3.2 percent).
- Consumer confidence is very low.
- Inward foreign direct investment is improving since April.
- Foreign trade suffered in Q1 but exports increased in Q2, due to strong demand in medical equipment, textiles, and electronics.
- Swiss exports to China decreased by 12.2 percent year-on-year by the end of March and by 24.4 percent by the end of July.
- During the same period, imports from China to Switzerland grew by 9.9 percent, mainly due to textiles.
- Unemployment in China peaked during the lockdown.
- China’s stimulus for the economy was not as high as during the crisis of 2008 and fiscal and monetary policies have been targeted and cautious.
- “New infrastructure”, such as 5G, iOT, big data centers shall be the pillar of China’s economical recovery.
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