After a contraction of 6.8% due to the covid-19 security measures
Though the economy of the country had been going after roller coaster periods since 1992, the pandemic situation had created a fast shrinking. This has recently been verified by many analysts that were already expecting growths since the Country has been selling medical supplies for the entire World. The Gross Domestic Product showed an increase of 2.5% after the lockdown measures in China has been relaxed. This shows that the second economy in the World is slowly recovering within the last two Months.
The Recovery Process is not equal all over the World
Many countries have gone through a process of recovery, others are still facing difficulties specially in sectors such as Tourism and Restaurants. Many of those are influential in the Economy and also for the industry to remain running in such areas. And we all know that social distancing a lockdown measures are affecting Employment and other important areas that need to recover as soon as possible. Many countries are taking measures such as putting people on Social Welfare for the sake of continuing the buying and selling. Cutting of taxes, easier access to loans for the sake of helping small and medium businesses and other emergency policies.
The news that China is recovering is actually relevant to the whole world
We are discussing about the second economy in the World and in fact, China has a huge amount of factories that produce a great amount of the products in the World. And this is real for the Hardware and Technology industries and other many major Companies currently. We saw the whole world going though important economical difficulties because of the lockdown measures. So the fact that the Country where it started is recovering already means good news for everybody. People are are slowly going back to their normal lives, including working and gathering. Social distancing measures and hygienic standards are still being adopted; and this could be applied on the long-term for our lives.
What about Brazil, will we be able to recover in 2020?
So far it is uncertain because like the United States our territory is huge and our people warm. They have more difficulty in dealing with Social Distancing. Brazil is a Latin country and people are very used to be close to their families and relatives, go to parties and social celebrations. This in a certain way increases the curve of spreading of the covid-19 in our territory. People want to go to the beach and bars, to be able to interact socially and this is actually not only part of the economy; but also keeping the Mental Health for many. So it will all depend on the capacity to deal with the crisis until scientists come up with a vaccine or even an efficient medication that might make people to recover normality.
The odds are not so good but we are handling
The Public Health system in Brazil was already going through difficulties that included dealing with corruption and lack of infrastructure. So a pandemic now, is certainly not the scenario we were expecting. People wanted the economy to improve during 2020 in Brazil after a political effort to change from left to right; and this all went a little to the background. We are certainly facing difficulties that are caused directly by the security measures during the Pandemic and the System is already overloaded with most severe cases that require Intensive Care Units. But on the other side of all that, there are vaccines in advanced stages that are being tested in the Country with promising results.
Conclusion
In this article we talked about the situation of China after the worst period of the pandemic passed. And of course one hint of economical gain offering medical supplies all over the world in front of a human tragedy. So far nothing appears to be wrong but many feel uncomfortable with the fact that so much profit is coming from such destruction in the Western World. Did you like the content we share in this post? Don’t forget to click the heart button and share with all your friends on the Social Media. Please also feel free to follow us on our official LinkedIn page for more international news.
References:
INFOMONEY.COM. https://www.infomoney.com.br/economia/pib-da-china-cresce-32-no-2o-trimestre-acima-do-esperado-mas-vendas-no-varejo-decepcionam/
G1. https://g1.globo.com/economia/noticia/2020/07/15/economia-da-china-cresce-32percent-no-segundo-trimestre.ghtml
