Is Recovering Post-Covid
It seems that China managed to successfully storm through the Covid crisis. According to their stock-market, their economic recovery is for certain.
One surprising fact is that the Chinese stocks have performed better this year in comparison to the US ones. After the outbreak of the Covid-19 in Wuhan, lockdowns and travel restrictions left serious consequences on the Chinese economy.
But, miraculously, the Chinese economy managed to grow 3.2% in the second quarter of this fateful 2020. Besides that, the International Monetary Fund published its expectations when it comes to the global GDP for the year 2020. While on the global scale the experts predicted that the GDP will be negative 4.9%, China’s GDP will actually grow 1%.
Which Industry Stocks Fared the Best
Companies from the food and beverage industries have climbed, including the auto manufacturers, tourism and duty-free retailers, as well as the brokerages.
It is expected that these stocks are most likely to continue their growth. What is also enticing about them is that these markets will not be affected by the US presidential election since they are domestic businesses.
However, there is one threat; the coronavirus is still very much present in the rest of the world and this can be a big problem for the Chinese economy. While the majority of the world is standing still, there can be an enormous demand for Chinese products.
What awaits us ahead is a big unknown. It looks like the future is depending heavily on the containment of the virus, as well as on the vaccine research. Restrictive measures at the beginning of this year proved to be effective when it comes to China. All that is left to see is when the first working vaccine will be developed and which further steps will be taken on a global scale.