Home Business European headlines丨The absence of the United States, who will provide the impetus for the recovery of the world economy?
European headlines丨The absence of the United States, who will provide the impetus for the recovery of the world economy?

European headlines丨The absence of the United States, who will provide the impetus for the recovery of the world economy?

by YCPress

The rebound of the new crown epidemic in Europe has intensified, and many countries have implemented blockade measures again, bringing the future economic outlook into a haze. At this critical moment, exciting news came from China.

On October 19, China’s latest economic data was released. In the third quarter, GDP grew by 4.9% year-on-year. In the first three quarters, economic growth turned from negative to positive, and the growth rate of other major indicators also turned positive.

While countries are looking for a balance between epidemic prevention and control and economic restart, China’s economic recovery is at the forefront of the world, which also brings hope to European companies struggling under the epidemic.

The Chinese market, a life-saving straw for German car companies?

At the Mercedes-Benz factory in Stuttgart, Germany, cars are slowly rolling off the production line. As early as the end of April, major auto companies have gradually restarted production.

Under the new crown epidemic, the automobile industry, which is the mainstay of the German economy, has been severely hit. According to statistics from the European Automobile Manufacturers Association, as of June, the loss of automobile production within the EU has exceeded 2.446 million, of which more than 616,000 are in Germany.

Thanks to the effective prevention and control of the epidemic, the Chinese market has become the first sector in the global auto market to recover. Daimler chairman and head of Mercedes-Benz Kang Linsong told reporters at the headquarter that since the outbreak of the epidemic, the Chinese market has seen a “V”-shaped rebound, and German automakers have benefited tremendously.

The second round of the epidemic in Europe is fierce. As the locomotive of the European economy, Germany still has a long way to go to recover its economy. On October 14, Germany’s five leading economic institutions issued a joint economic forecast report, which lowered the German economic forecast for this year and next. In 2020, the German economy is expected to shrink by 5.4%.

As we all know, the German economy relies heavily on exports. Affected by the epidemic, the scale of German trade with Western developed countries such as the United States and Britain has generally declined, while trade with China has increased sharply. The Chinese market has increasingly become an important source of driving force for the German economy to emerge from the shadow of the epidemic.

It is worth noting that the German export structure is quietly changing. In the second quarter of this year, China surpassed the United States to become Germany’s largest export market. According to the observation of the headquarter reporter, from April to June 2020, China became Germany’s largest exporter for three consecutive months.

The latest data shows that German exports to China in August fell slightly by 1.1% year-on-year to 7.3 billion euros, almost back to last year’s level. It can be seen that China’s economic recovery has awakened the huge market demand under the suppression of the epidemic. In contrast, German exports to the United States in August fell by 21.1% year-on-year. The German Statistics Office stated that the deteriorating new crown epidemic in the United States was the main reason.

On October 15th, the China-Europe Railway “Audi Imported Train” loaded with 82 Audi cars arrived in Xi’an from the port of Bremerhaven, Germany. During the epidemic prevention and control period, the China-Europe Express trains between China and Europe have effectively maintained the stability of the industrial chain and supply chain and have become a guarantee for Sino-German trade.

Volker Trier, Chief Executive Officer of Foreign Trade of the German Chamber of Commerce and Industry, said that China has overcome the impact of the epidemic to ensure the operation of the global supply chain. China has surpassed the United States to become Germany’s main trading partner. China’s contribution to the world economy and German economic recovery should not be underestimated.

The new crown epidemic has hit the world economy severely. The International Monetary Fund report pointed out that the global economy is expected to shrink by 4.4% in 2020, the world’s largest economy, the US economy, will shrink by 4.3% this year, while the Chinese economy is expected to grow by 1.9%, making it the only major economy in the world to achieve positive growth.

The latest data from the National Bureau of Statistics of China shows that China’s third-quarter GDP grew by 4.9% year-on-year. In addition, China’s economic growth, total retail sales of consumer goods, investment in fixed assets, total imports and exports of goods, and the growth rate of per capita disposable income of residents in the first three quarters of China have all changed from negative to positive. This dazzling data has attracted the attention of the world and also provided strong support for the forecast of the International Monetary Fund.

Li Laisi, former chief economic adviser to the mayor of London, said that China was hit by the new crown epidemic earlier than other countries. China’s firm and decisive implementation of prevention and control measures has laid a solid foundation for economic restart. The acceleration of economic growth in the third quarter gave him full confidence in China’s economy next year.

Facing the huge impact of the epidemic, as the two major engines of the world economy, China and the United States are in completely different stages. City of London market analyst Simon Harvey pointed out that China has taken the lead in restarting the economy on the basis of successfully controlling the epidemic and becoming the engine of global economic growth. It’s too early.

Ke Ruizhi, Director of the Globalization and Development Strategy Division of the United Nations Conference on Trade and Development, said that the Chinese economy is growing against the trend in the global downturn, and the growth rate next year is expected to be even more pronounced. In the “post-epidemic era,” China has used its own recovery to drive the world’s common recovery. Isn’t this a responsible major country?