If Europe’s main economic growth engine is Germany, then in Asia it is undoubtedly China. Whether China wants it or not, the gradual recovery of its economy will also benefit its neighbors in the region.
The neighboring Asian economies are expanding following China. Apparently, their growth will continue, since analysts assess the situation as favorable. The main cause of the optimistic estimates is definitely the rising consumer confidence index. "I continue to expect Chinese equities to outperform developed market equities because China has been showing a continued V-shaped rebound, you know, from coronavirus," David Chao, Invesco's Global Market Strategist for the Asia Pacific, said. It is clear that the pace of the economic recovery will not be as good as after the global financial crisis of 2008. Nevertheless, a rebound will take place and China will play a key role at this point. In fact, it has already been playing. China’s industrial production is advancing at the fastest pace in the last 10 years. The country’s business activity is on the rise, while the second-quarter gross domestic product spiked by 3.2% on a yearly basis.
It seems that China has managed to avoid a technical recession despite the fact that its economy contracted by a record 6.8% in the first quarter. It means that China’s neighboring countries will continue to enjoy the fruits of rapid economic recovery.
