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China’s economy grew 3.2% in the second quarter following a record slump.
The world’s second biggest economy saw a sharp decline in the first three months of the year during coronavirus lockdowns.
But figures released on Wednesday show China’s Gross Domestic Product (GDP) returned to growth during April to June.
The numbers are being closely watched around the world as China restarts its economy.
The figure is higher than experts were predicting and points towards a V-shaped recovery for the economic powerhouse.
It also means China avoids going into a technical recession – signified as two consecutive periods of negative growth.
The bounce-back follows a steep 6.8% slump in the first quarter of the year, which was the biggest contraction since quarterly GDP records began.
The country’s factories and businesses were shutdown for most of this period as China introduced strict measures to curb the spread of the virus
The government has been rolling out a raft of measures to help boost the economy, including tax breaks.
“China’s V-shaped recovery has largely completed. Industrial production and investment growth have both turned positive in recent months,” said a research note by Deutsche Bank.
“Consumer spending is still below its pre-Covid path, but the remaining gap is largely concentrated in a few sectors – travel, dining, leisure services– where rapid recovery is unlikely,” it added.
In May, China announced it would not set an economic growth goal for 2020 as it dealt with the fallout from the coronavirus pandemic.
It is the first time Beijing has not had a gross domestic product (GDP) target since 1990 when records began.
For the first six months of the year, China’s economy fell 1.6%, its National Bureau of Statistics said.