During the second quarter of the year, Chinese GDP year on year growth rate increased with respect to the previous quarter, recording a rate of 3.20%. Regarding inflation, CPI registered a year over year growth rate of 2.73%, significantly decreasing compared to the rate recorded in 1Q20. Regarding the labor market, the unemployment rate slightly increased up to a 3.84% rate. Finally, the Chinese Renminbi experienced a depreciation of 0.09 RMB/$ during the second quarter of 2020, reaching an exchange rate of 7.09 RMB/$.
Macroeconomic outlook report: China 2Q20
- Chinese GDP y/y growth rate registered a significant increase during the second quarter up to 3.20%. This meant a 10.00 p.p. increase when compared to 1Q20.
- China has been the only major economy to register a positive GDP growth during 2Q20. This was because China stabilized the spread of the virus during the second quarter of 2020 after being the first country to impose strict measures during the first quarter of the year.
- During the second quarter of 2020, the unemployment rate recorded a 0.18 p.p. increase when compared to 1Q20, standing at 3.84% rate.
- The RMB depreciated against the US dollar during 2Q20, reaching an average exchange rate of 7.09 RMB/$, which represented a depreciation of 0.09 RMB per dollar (-1.21%) when compared to the previous quarter.
- Regarding inflation, the CPI growth registered a decrease of 2.24 p.p. when compared to the previous quarter, reaching a growth rate of 2.73% during 2Q20.
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