During the third quarter of 2020, China consolidated its economic recovery, which began during the previous quarter, and recorded a y/y GDP growth rate of 4.90%. In terms of inflation, the CPI registered a year-on-year growth rate of 2.27%, decelerating compared to the rate observed in the previous quarter. Regarding the labor market, the unemployment rate increased up to a rate of 4.19%. During the third quarter of 2020 the Chinese renminbi experienced an appreciation of 0.22 RMB/$ against the dollar, and the exchange rate stood at 6.87 RMB/$.


Macroeconomic outlook report: China 3Q20

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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 1.70 p.p. compared to 2Q20, up to a rate of 4.90%.
  • China continues to lead the global recovery from the coronavirus crisis. The rebound of the economic activity was driven by the progressive relaxation of containment measures throughout the second and third quarters, and the positive development of the pandemic in the country.
  • During 3Q20, the unemployment rate increased by 0.35 p.p. compared to 2Q20, up to a rate of 4.19%.
  • The RMB appreciated against the US dollar during 3Q20, and reached an average exchange rate of 6.87 RMB/$, after decreasing by 0.22 RMB per dollar compared to the previous quarter.
  • Regarding inflation, CPI growth registered a decrease of 0.46 p.p. compared to the previous quarter, down to a growth rate of 2.27% during 3Q20.

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