Editorial | China growth figures reveal key to recovery rests on coronavirus control
- As other major economies continue to struggle with the Covid-19 pandemic and recession, action taken by Beijing has paid off – but it can ill-afford to relax anti-infection measures
China consolidated its singular bright spot in the world economy with better-than-expected gross domestic product figures for 2020. A last-quarter growth surge of 6.5 per cent in GDP resulted in whole-year growth of 2.3 per cent.
That is a dramatic turnaround from the early part of the year, including a first-quarter contraction of 6.8 per cent, when the coronavirus epidemic resulted in shutdown of factories. Industrial production grew by 2.8 per cent last year after a 7.3 per cent surge year on year in December.
Meanwhile other global economies continue to struggle with the pandemic and recession. The lesson to be learned is that the mainland’s strong recovery can be attributed to the fact that it was the first major economy to bring a massive outbreak of Covid-19 under control.
That objective – whatever it takes – is the key to economic recovery, regardless of the social and economic dislocation and cost at the time. Without it, no matter what various governments are doing to spur recovery, it is unlikely to be effective.
Premature relaxation of anti-infection measures, or resistance to imposition of the most rigorous and effective ones, therefore comes at a high price.