Can The United States Compete With China Avoiding Recession?

Illustration. (Photo: Unsplash)

JAKARTA - China was able to avoid a recession after their economy grew 3.2 percent in the second quarter of this year. China is the first country to successfully recover its economy amid the COVID-19 pandemic.

As quoted from the South China Morning Post Friday, July 17, China's economy plunged to 6.8 percent in the first quarter of 2020. However, it finally rose in the second quarter of 2020.

As for the achievement of this economic growth, China became the first major economy to achieve positive growth. Meanwhile, rivals such as the United States (US), Japan, and European Union countries still seem to have difficulties in overcoming their economic problems.

Mei Xinyu, a researcher from China's Ministry of Commerce, said China's economy has definitely surpassed the US in the second quarter of this year. "China's GDP during 2020 could be lower than the US. But, if domestic problems in the US continue, then China's GDP could exceed the US this year," said May.

As a result of the pandemic that has hit the world, in May, Prime Minister Li Keqianh announced that China would not set an economic growth target for this year.

China's positive economic growth seems to prove their claim regarding the success in overcoming the spread of the COVID-19 outbreak.

On the other hand, the US itself is still waiting for economic improvement in the second quarter amid the COVID-19 pandemic. Launching CNBC, there is positive news from retail sales in Uncle Sam's country in June 2020, growing 7.5 percent compared to the previous month (month-to-month / mtm).

The increase in retail sales in the US was driven by durable goods such as motor vehicles, household furniture, clothing, electronic devices, musical instruments, and books. Sales of non-durable goods also shot up, for example, public consumption in restaurants and bars increased by 20 percent.

After the easing of social distancing, it seems that the US people have dared to do activities outside the home. Proof of online ordering fell 2.4 percent, a sign that people are back shopping at physical stores.

The US economy contracted 4.8 percent in the first quarter of 2020. This is proof that the COVID-19 outbreak is capable of paralyzing the economy of the world's largest Gross Domestic Product (GDP) country.