For China, a genuine V-shaped recovery?
HONG KONG - China's effectiveness in containing COVID-19 infections has borne fruit, and economic activity began regaining strength during the second quarter, partly owing to fiscal and monetary stimuli implemented by the authorities, according to a research note from BBVA Bank.
China's GDP fell 6.8% in the first quarter, having grown at a rate of 6% in the final quarter of 2019, BBVA says.
"However, demand has not recovered so strongly, and is dependent on the global cycle."
BBVA says the recovery can be attributed to a surge in supply brought about by the return of workers to factories following the lockdown.
"Growth in 2020 could reach 2.2%, above the 1% forecast by the IMF," the bank says.