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Macroeconomic outlook report: China

First quarter of 2020

During the first quarter of 2020, Chinese GDP y/y growth rate heavily contracted down to -6.80% during 1Q20 when compared to 4Q19. Regarding inflation, CPI registered a year-over-year growth rate of 4.97%, after increasing when compared to the previous quarter. In the labor market, the unemployment rate slightly increased up to 3.66% rate. Finally, the Chinese Renminbi experienced an appreciation of 0.01 RMB/$ against the dollar during the first quarter of 2020, reaching a rate of 7.00 RMB/$.

Macroeconomic overview

  • Chinese GDP y/y growth rate heavily contracted by 12.80 p.p. down to -6.80% during 1Q20 when compared to 4Q19.
  • This contraction was motivated by the containment measures carried out in the country during the first months of the quarter to mitigate the spread of the Covid-19 virus, specially affecting the economy during these first two months.
  • During the first quarter of 2020, the unemployment rate increased 0.04 p.p when compared to 4Q19, standing at 3.66% rate.
  • The RMB appreciated against the US dollar during the 1Q20, reaching an average exchange rate of 7.00 RMB/$, which represented an appreciation of 0.01 RMB per dollar when compared to the previous quarter.
  • Regarding inflation, the CPI growth rate increased 0.70 p.p. when compared to the previous quarter, reaching a growth rate of 4.97% during 1Q20.

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© GMS Management Solutions, S.L., 2020. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.