How long has it taken China’s economy to recover from the COVID-19 epidemic?

Abstract

The coronavirus disease 2019 (COVID-19) epidemic has profoundly impacted the stability of China’s economy, resulting in severe short-term economic fluctuations. A critical question arises: How long did it take for China’s economy to return to its pre-epidemic development status? This paper aims to answer this question and conducts an in-depth analysis of China’s national economic resilience in the face of this unprecedented challenge. To achieve this goal, this paper begins by examining the progression of the COVID-19 epidemic and China’s corresponding economic policies. It then delves into the national economic resilience of China across macroeconomic, industrial, and financial dimensions. This is achieved by analyzing the trajectory of economic recovery in these three dimensions following the substantial shock of the pandemic. The result shows that China spent approximately 2 years to restore its macroeconomic development, industrial structure, and financial system to the pre-COVID-19 epidemic status. This result reflects the national economic resilience of China to some extent. Following the immense shock of the COVID-19 epidemic, China’s economy exhibited a rapid recovery, demonstrating robust national economic resilience. This recovery can be attributed to several factors: first, a solid economic foundation established over past decades; and second, the strategic policies implemented by China, including decisive epidemic management, effective fiscal measures, and adaptable monetary policy.