During the fourth quarter of 2020, China consolidated its economic recovery, which began two quarters ago, and recorded a y/y GDP growth rate of 6.50%. In terms of inflation, the CPI registered a year-on-year growth rate of 0.07%, decelerating compared to the rate observed in the previous quarter. Regarding the labor market, the unemployment rate increased up to a rate of 4.24%. During the fourth quarter of 2020 the Chinese renminbi experienced an appreciation of 0.27 RMB/$ against the dollar, and the exchange rate stood at 6.60 RMB/$.


Macroeconomic outlook report: China 4Q20

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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 1.60 p.p. compared to 3Q20, up to a rate of 6.50%.
  • 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 4Q20, the unemployment rate increased by 0.05 p.p. compared to 3Q20, up to a rate of 4.24%.
  • The RMB appreciated against the US dollar during 4Q20, and reached an average exchange rate of 6.60 RMB/$, after decreasing by 0.27 RMB per dollar compared to the previous quarter.
  • Regarding inflation, CPI growth registered a decrease of 2.20 p.p. compared to the previous quarter, down to a growth rate of 0.07% during 4Q20.

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