Supply side boosts China's recovery from COVID-19 downturn
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China's economic recovery is on track, aided by government support. Insurance, too, is back to pre-pandemic rates of premium growth and we expect its growth in 2020 to be the strongest worldwide.
Key takeaways
- China reported 3.2% GDP growth in the second quarter of 2020, up from -6.8% in 1Q.
- The supply side is leading the recovery with capital formation up 5%, the largest contributor to 2Q growth.
- Policy support will be essential to offset external headwinds and sustain economic recovery in the second half of the year.
- Insurance premium growth has returned quickly to pre-COVID-19 levels.
- The insurance industry is receiving strong regulatory support and we expect China to lead the global insurance recovery in 2020 with a return to trend growth in 2021.
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