Wuhan Skyline as Chinese Economy Grows despite pandemic
Photo by jiawei cui from Pexels

GDP data released today showed that China was the only developed or emerging nation to see its economy grow last year.

The world’s second-largest economy was the first to suffer from the coronavirus outbreak, which started in Wuhan province. However, were also ahead of the curb in terms of enforcing nationwide lockdowns, and track and trace systems which helped curb the spread.

Figures released today showed that gross domestic product came in at 2.3% on the year, versus the 2.0% expected.

The growth mainly came thanks to growth of 6.5% in Q4 of last year. Both the Hang Seng and Shanghai Composite were up on the news.

DAX rises despite Bundesbank warning

The Bundesbank today warned that the German economy could be in risk of sizable setbacks, if the COVID-19 situation continues to worsen.

With cases of the virus continuing to rise across the continent, Germany took increasingly tight measures, such as closing schools and stores, and limiting gatherings of people in the hope of reducing the spread.

Despite this, cases continue to rise, with the latest figures showing over 11,000 new cases on Sunday.

The bank warns that, “If infections fail to ease significantly and current restrictions on economic activity were to persist or even be tightened, there could be a sizeable setback”.

The DAX 30 somewhat ignored this, rising 0.44% on Monday.

Biden expected to issue a host of executive orders

With the U.S. session closed today in respect of Martin Luther King Day, many market commentators have started speculating what Joe Biden will do once he is sworn in on Wednesday.

Many believe the incoming President will waste little time moving away from some landmark policies of the Trump administration with several new executive orders.

These could include re-joining the Paris Climate Accord, making it compulsory to wear face masks, and ending a ban on travellers from Muslim-majority countries.

Biden who will be sworn in on Wednesday may also need to oversee a Trump impeachment, whilst trying to bridge the widened gap in the political aisle.

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