- China grew above expectations despite the pandemic.
- Air transportation in the world fell by 60%
- Biden made clear which decisions of Trump will be canceled.
China Grew Above Expectations Despite the Pandemic
The Chinese economy achieved its pre-pandemic growth rate in the last quarter of 2020 and managed to close the year above expectations with a growth of 2.3 percent.
China’s GDP grew by 6.5 percent annually in the fourth quarter of 2020. Economists who participated in the Bloomberg survey had an expectation of 6.2 percent growth for the fourth quarter and 2.1 percent for 2020.
While the financial and monetary incentives that accelerate the infrastructure and construction investments support growth throughout the year, the increase in Chinese exports after controlling the coronavirus cases also played a role in the growth.
Industrial production, on the other hand, recorded an annual increase of 7.3 percent in December, maintaining its high pace. Industrial production increased by 2.8 percent in 2020. Chinese retail sales range growth declined from 5 percent in November to 4.6 percent. Retail sales contracted by 3.9% in 2020. Chinese fixed investments grew by 2.9 percent annually in 2020.
Online sales of consumer goods rose at a relatively rapid pace of 14.8% last year, the statistics bureau said, but the proportion of overall retail sales held fairly steady at around one-fourth.
Economists expected China to have been the only major economy to grow last year and predicted GDP in 2020 expanded by just over 2%. Those polled by Reuters expected the economy to grow 6.1% in the fourth quarter, faster than the 4.9% pace of the prior quarter.
Cui Li, Head of Macro Research at CCB International, stated that the Chinese economy has gained strong momentum in the last quarter and that manufacturing is doing well. After the data, the onshore yuan has strengthened up to 0.1 percent against the dollar. The index of small-scale companies, the ChiNext index, increased by more than 1 percent.
Air Transportation in the World Fell by 60%
The financial losses of airlines in 2020 amounted to $370 billion due to the coronavirus pandemic, airports and air navigation service providers lost $115 billion and $13 billion, respectively. This was reported by the International Civil Aviation Organization. 1.8 billion passengers used air transport in 2020, instead of the 4.5 billion in 2019.
In 2020, international air travel decreased by 60%, bringing the number of air flights back to the 2003 level. This was reported by the International Civil Aviation Organization.
There was a moderate rebound during the summer travel period, but recovery was short-lived. “Sectoral recovery became more vulnerable and volatile again during the last four months of 2020, indicating an overall double-dip recession for the year”, ICAO said.
In the most optimistic scenario, said ICAO, by June of 2021 passenger numbers will be expected to recover globally to 71 percent of their 2019 levels (or 53 percent for international and 84 percent for domestic flights). A more pessimistic scenario foresees only a 49 percent recovery (26 percent for international and 66 percent for domestic).
The world’s airlines need another $70-$80bn of government support to get through the crisis caused by the coronavirus pandemic.
That’s according to the head of the International Air Transport Association (IATA), which is the trade association for the world’s airlines.
Director-General Alexandre de Juniac told the BBC that sum was “on top of the $170bn already granted”. Extra funds would “bridge the gap” between now and June, he said.
June is when he expects the first significant easing of travel restrictions, as the impact of vaccines begins to be felt.
Biden Made Clear Which Decisions of Trump will be Canceled
In his first hours as president, Joe Biden plans to take executive action to roll back some of the most controversial decisions of his predecessor and to address the raging coronavirus pandemic, his incoming chief of staff said Saturday.
It is reported by the Los Angeles Times with reference to the statement of the head of administration Ron Klein.
On the day of his inauguration, Biden plans to:
– Remove Trump’s restrictions on immigration from several countries with a predominantly Muslim population.
– Rejoin the Paris Climate Agreement.
– Require masks to be worn within federal property and on interstate travel.
– Extend the moratorium on student loan payments.
– Prevent the eviction of 25 million coronavirus-affected tenants nationwide.
– He is also expected to send legislation to Congress detailing a new immigration bill, along with a US$1.9 trillion (S$2.5 trillion) plan aimed at stabilizing the U.S. economy.
In the following week, Klain said, Biden would take additional actions relating to criminal justice reform, climate change and immigration — including a directive to speed the reuniting of families separated at the US-Mexico border under Trump’s policies.
More actions will be added, Klain said, once they clear legal review
“These executive actions will deliver relief to the millions of Americans that are struggling in the face of these crises,” Klain said in the memo. “President-elect Biden will take action — not just to reverse the gravest damages of the Trump administration — but also to start moving our country forward.”
“Full achievement” of Biden’s goals will require Congress to act, Klain said, including the $1.9 trillion virus relief bill he outlined on Thursday. Klain said that Biden would also propose a comprehensive immigration reform bill to lawmakers on his first day in office.
In addition, former Assistant Secretary of State for European and Eurasian Affairs Victoria Nuland may become one of the deputy heads of the State Department.
In addition to his many executive orders and policy priorities, Biden also has his eye on his first overseas trip as president.
The Sunday Telegraph reports that Biden is planning on making the United Kingdom the site of his first trip outside of North America, which would be considered a boost to Prime Minister Boris Johnson.
Earlier, Biden promised the most unusual inauguration in history: “Americans will be proud.”