What: WWD reports GDP rose 2.3% in 2020, but retail sales contracted -3,9% although they grew +4.6% on Q4.

Why it is important: The overall V shape recovery is fragile, although IADS member SKP posted record sales on 2020 as a whole.

The 2020 GDP growth for China is 2.3%, the lowest in 40 years, and retail sales amounted to USD 6.05 trillion, -3,9% compared to LY. Interestingly, online sales represent a quarter of total sales, from 4% last year. GDP forecast for 2021 is estimated between 7.1 and 7.9%. The equilibrium of the recovery is still fragile, at a moment when CNY is approaching and some clusters have been spotted in Heibei, Heilongjiang and Jilin, leading to massive lockdown responses in order to circumvent the danger.

China Full Year GDP Rose 2.3%, Retail Sales Contract