Skip to main content

China's GDP

How has China recovered?

1. While much of the global economies are impacted by the Covid-19, China’s GDP growth has recovered sharply.

2. This is a result of a bounceback in manufacturing output and a public spending boost.

3. China’s recovery points towards a V-shaped recovery – a sharp fall followed by an equally sharp recovery.

4. It has also effectively avoided a technical recession.

Why is China’s recovery important?

1. The sharp recovery signals a major turnaround in the world’s second largest economy.

2. It also points to facts that

a. The recovery in economic activity is directly linked to a country’s success in controlling the coronavirus spread

b. The quality of policy support matters, even if the scale of spending is modest.

3. According to the IMF, China’s COVID-19 related support policies, amounted to just 2.5% of GDP, as compared to 11% for the US, over 20% for Japan, and 34% for Germany.

4. In China one-half of GDP is driven by consumption.

5. China focussed on maintaining consumption by attempting to put money in the hands of consumers.

6. This was done through pre-paid vouchers for specific products and other related measures.

Which are key takeaways?

1. The sharp recovery in growth points that the size of the fiscal package is not such a big determinant

2. The quality of spending could have a significant positive impact on the economy .

3. The swiftness of a country in bringing the epidemic under control is crucial.

Where does India differ from China?

1. According to various agencies, India’s GDP estimates are projected to contract by 5-6%.

2. Central government’s fiscal relief of under 2% of GDP is regarded megear to mitigate the adverse impact of the economic crisis triggered by the Covid-19 pandemic and subsequent lockdown.

3. In China – the efforts were to put money directly into the hands of the people.

4. But in India, much of the Rs 20 lakh crore Covid-19 economic package has been liquidity driven, with little burden on the Central exchequer.

5. It has been primarily focused on pushing banks to extend credit on the back of government guarantees to sectors like small businesses, non-banking financial companies, microfinance institutions and housing finance companies.

Comments

Popular Post

■ Can India Become A Technology Leader? India

  ■ Can India Become A Technology Leader?   ✅India is presently not a major player in the field of technology due to certain challenges and on the other side, there are many celebrated Indian technologists around the world as many of the technology giants choose an India- born techie as their leader. ✅The conversation around Indian executives at the helm of top tech companies has gathered some momentum with Parag Agrawal taking over as Twitter CEO. The major technology companies like Google and its parent company Alphabet, Microsoft and Twitter, Adobe and IBM are all headed by Indians. ● The Case of the U.S: ✅The Indian immigrants in the U.S are the part of the most educated and professionally accomplished communities in that country. ✅As of 2019, there were 2.7 million Indian immigrants in the U.S. ✅The government of the U.S has been instrumental in the triumphs of enterprise and the free market. ✅The governmental agencies have been actively supporting the research and develo...

Most Important Topics. International , Science , UPSC, BPSC..

  International Relations Prev First in-Person Meeting of Quad Countries           Star marking (1-5) indicates the importance of topic for CSE Tags:  GS Paper - 2 Groupings & Agreements Involving India and/or Affecting India's Interests Why in News Recently, the first in-person meeting of  Quad  leaders was hosted by the US. Issues like climate change, Covid-19 pandemic and challenges in the Indo Pacific, amidst China's growing military presence in the strategic region, were discussed in the meeting. Key Points Background: In  November 2017, India, Japan, the US and Australia gave shape to the long-pending proposal of setting up the Quad  to develop a new strategy to keep the critical sea routes in the Indo-Pacific free of any influence. China claims nearly all of the disputed  South China Sea , though Taiwan, the Philippines, Brunei, Malaysia and Vietnam all claim parts of it. The South China Sea is an arm of the Western ...

DRDO

Defence Research and Development Organisation (DRDO) carried out two successful tests of the latest variant of the BrahMos missile- from the land platform and the other from the air. About the missile 1. It is a cruise missile that can be guided towards a pre-determined land or sea-based target. 2. BrahMos is developed through a collaboration between India and Russia. It is named after the rivers Brahmaputra and Moskva. 3. This is classified as a supersonic cruise missile. It means it has the capability to attain speeds 2.8 times that of sound (Mach 2.8). 4. The first version of the BrahMos supersonic cruise missile was inducted into the Indian Navy in 2005. Latest variants 1. Tests are conducted periodically to continuously upgrade and update the missiles with new hardware and software. 2. Capability of the latest variants has been tested based on various parameters under different atmospheric conditions. 3. Additional hardware and software systems have been tested based on t...

India's daily top news

🗞Today's Top News 05.05.2020 1. प्रधानमंत्री नरेन्‍द्र मोदी ने गुटनिरपेक्ष देशों के शिखर सम्‍मेलन में हिस्सा लिया 2. सूक्ष्‍म, लघु और मझौले उद्यम मंत्री नितिन गडकरी ने कहा-मंत्रालय एग्रो-एमएसएम...

Follow the Page for Daily Updates!