A new report from one of China’s big state-owned lenders forecasts full year GDP growth of 2.5% in 2020, following the economic impacts of COVID-19.
The “2020 Third Quarter Economic and Finance Outlook Report” (2020年三季度经济金融展望报告) released by Bank of China on 30 June sees China’s GDP growing by around 2.8% in the second quarter, after posting a 6.8% YoY plunge in the first quarter as a result of the impact of the Novel Coronavirus on economic activity.
The Report also forecasts GDP growth of around 5.2% in the third quarter, and full year growth of around 2.5% in 2020.
“Entering the second quarter, disease prevention and control achieved decisive results, with continued resumption of work and production, and resumption of commercial and market activity” said the Report.
“Looking at the second half, the Chinese economy will continue to recover and improve, but there also exist the hidden hazards of a rebound in the disease, increases in the difficulty of commercial operation, and an expansion in local government debt risk.”