BEIJING -- China's economy, as shown by multiple mid-year indicators, has ridden out its downturn due to COVID-19 strains and bounced back to growth in the second quarter (Q2). Economists believe that the country's V-shaped recovery is only getting started.

In Q2, China's gross domestic product expanded by 3.2 percent year-on-year, reversing a 6.8-percent contraction in the previous quarter. China's fiscal revenue marked the first expansion this year by gaining 3.2 percent year-on-year in June, while the contraction of the retail sector declined markedly.

BACK IN THE GAME

"China's economy has gradually emerged from the slump and returned to the level it was roughly at prior to the outbreak, backed by the stimulation that has delivered burgeoning signs of work resumption, industrial chains and services sector," said Shao Yu, chief economist at Orient Securities.

Latest data showed that the purchasing managers' index (PMI) for China's manufacturing sector rose to 51.1 in July from 50.9 in June, remaining in expansion territory for the fifth month in a row, indicating stronger confidence of market entities.

"The steadily firming recovery points to the effectiveness of China's epidemic prevention and pro-growth policies to boost production and domestic consumption," said Sheng Hai, a macro analyst with China Industrial Securities.

His point was echoed by Steven Zhang, chief economist at Morgan Stanley Huaxin Securities. "China has its institutional advantages that enable a more agile and rapid response to public safety emergencies like COVID-19."

The prompt introduction and implementation of an array of measures, including higher fiscal spending, tax relief and cuts in lending rates and banks' reserve requirements to revive the economy and support employment, according to Zhang, is one of the major reasons behind the Q2 positive growth.