/ world today news/ The Chinese economy is expected to grow by 7.9% in 2021, which is almost double the global growth rate forecast for the year, the World Bank said in its forecast on Tuesday.
“Growth in China is expected to accelerate to 7.9% this year – 1 percentage point above the June forecast – reflecting the release of pent-up demand and a faster-than-expected resumption of manufacturing and exports,” the World Bank said in a statement. in the publication of the Global Economic Outlook 2021.
In October, the International Monetary Fund forecast that China would reach 8.2% growth this year, after becoming the only major economy to post positive growth in 2020.
Manufacturing in China recovered faster than expected last year. China’s official statistics have so far outlined a steady course of its economic rise.
The country’s GDP increased by 4.9% year-on-year in the third quarter of 2020, reversing a decline of 6.8% in the first quarter and a rise of 3.2% in the second quarter.
The World Bank said China was an “exception” and the disruptions imposed by the pandemic on most other emerging markets and developing countries were more severe than previously predicted, leading to deeper recessions and slower recoveries, especially in countries with recent large outbreaks of COVID-19.
Ning Jizhe, vice minister of the National Development and Reform Commission, said China will maintain a proactive fiscal policy and prudent monetary policy and stabilize the economy at a “reasonable” level this year, amid uncertainties in the external environment.
U.S. gross domestic product is expected to expand 3.5 percent in 2021, after an estimated 3.6 percent contraction in 2020, according to the World Bank.
He noted that shallower contractions in advanced economies, plus a stronger recovery in China, had led to a global economic downturn that was “slightly less severe” than previously forecast.
Overall, the global economy is expected to rise by 4%, assuming the initial spread of the COVID-19 vaccine becomes widespread and continues actively throughout the year.
Although the global economy is growing again after a 4.3% decline in 2020, the pandemic has caused large numbers of deaths and illnesses, plunged millions into poverty and could reduce economic activity and incomes for a long period, the World Bank said.
But recovery is likely to be delayed unless policymakers take decisive action to tame the pandemic and implement reforms to boost investment, the World Bank warned, as COVID-19 continues to spread with sharp resurgences in many regions.
“Although the global economy appears to have entered a subdued phase of recovery, policymakers face enormous challenges – in public health, debt management, fiscal policies, central banking and structural reforms – as they try to ensure that this a still fragile global recovery is gaining strength and creating a foundation for strong growth,” said World Bank Group President David Malpass.
“To overcome the impacts of the pandemic and counter the unpredictability, a major push must be made to improve the business environment, increase the flexibility of the labor and product markets, and strengthen transparency and governance,” he said.
Translation: ES
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