China’s economy will return to its pre-epidemic level in the third quarter of 2020 following a consumption recovery and when economic stimulus measures start to produce effects, analysts predicted.

（Photo/Xinhua）

A previous World Economic Outlook (WEO) forecast by the International Monetary Fund (IMF) projected that China is expected to be the only major economy that could see growth this year.

Statistics by the National Bureau of Statistics of China indicated that China’s consumer price index (CPI) rose 2.5 percent year on year in June. In addition, the yuan had strengthened past 7 to the dollar on July 9.

The Asian giant (China), felled by Covid just months ago, appears to have pulled off a remarkable turnaround and may be set to drive another economic cycle, according to a report by Bloomberg.

China was basically the first major economy to reopen and bring the COVID-19 epidemic under control, when major world economies were struggling amid the outbreak, according to an official with Deutsche Bank Wealth Management.

Looking forward, it is believed that with the recovery of consumption and domestic economic stimulus measures, China's economic growth may gradually recover in the third and fourth quarters, and return to pre-crisis levels by the end of the third quarter. China’s moderate growth in 2020 and a strong recovery in 2021 are expected to be better than other economies, said the official.

The Chinese government has recently rolled out a slew of measures to attract foreign investment and promote market growth.

Because of the stimulus measures, some industries showed signs of recovery in April, said the Deutsche Bank Wealth Management official.

L'Oreal China President and CEO Fabrice Megarbane said the Double Five Shopping Festival launched by the Shanghai government has effectively boosted consumption confidence and brought about tangible benefits to enterprises and consumers.

Mauro De Felip, general manager of Ferrero China, said the COVID-19 outbreak has forced the relationship between products and consumers and the supply-demand relationship to enter a new phase of development.

Ferrero maintains firm confidence in China's consumer market prospects. The company has seen the strong resilience and unlimited potential of the Chinese economy, Mauro De Felip said.