During the first quarter of 2021, China recorded a positive GDP growth rate for the fourth consecutive quarter, increasing to a rate of 18.30%. In terms of inflation, the CPI registered a year-on-year growth rate of -0.03%, decelerating compared to the rate observed in the previous quarter. Regarding the labor market, the unemployment rate decreased down to a rate of 3.94%. During the first quarter of 2021 the Chinese renminbi experienced an appreciation of 0.11 RMB /$ against the dollar, and the exchange rate stood at 6.48 RMB/$.


Macroeconomic outlook report: China 1Q21

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Macroeconomic overview

  • China's annual GDP growth rate consolidated the recovery initiated in 2Q20. The y/y growth rate registered an increase of 11.80 p.p. compared to 4Q20, up to a rate of 18.30%.
  • China continues to lead the global recovery from the coronavirus crisis. This situation is driven by the good evolution of the pandemic in the country, and by the positive influence of recoveries in other advanced economies.
  • During 1Q21, the unemployment rate decreased by 0.30 p.p. compared to 4Q20, down to a rate of 3.94%.
  • The RMB appreciated against the US dollar during 1Q21, and reached an average exchange rate of RMB 6.48/$, after decreasing by RMB 0.11 per dollar compared to the previous quarter.
  • Regarding inflation, CPI growth registered a decrease of 0.10 p.p. compared to the previous quarter, down to a growth rate of -0.03% during 1Q21.

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