Mainland China’s economic growth soared in the first quarter of 2021, owing to continued recovery and extreme low base effect.
Mainland China’s economy continued to recover in the first quarter of 2021. Real GDP surged 18.3% year on year (y/y) in the quarter, up from 6.5% y/y in the fourth quarter of 2020. The first quarter’s growth marked the highest quarterly year-on-year rate of expansion in mainland China’s quarterly GDP data reporting history. The elevated growth was mostly owing to extreme low base effect, as mainland China’s economic output cratered in the first quarter of 2020, owing to the draconian lockdown to contain the COVID-19 pandemic.
Comparing real GDP of the first quarter of 2021 with that of the pre-pandemic first quarter of 2019, mainland China’s economy grew at a more muted rate of 10.3%, or a compound average annual growth rate of 5.0% over the two years.
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