Daily US Times: While much of the world is struggling to make a stand to recover from recession, China’s economy is hitting its stride again and will end this year more influential than ever.
China’s economy, the second largest in the world, was the only major world power to avoid a recession this year as Covid-19 forced lockdowns and crippled businesses. It is expected that China’s GDP will grow 1.6% this year, while according to summer projections from the World Bank, the global economy as a whole will contract 5.2%.
China built its relatively quick recovery through several measures, including population tracking policies intended to contain the virus and stringent lockdown. The Chinese government also set aside hundreds of billions of dollars for major infrastructure projects, and to stimulate spending among its populace, the government offered cash incentives. The steps has been evident, as tourism and spending rebounded during last week’s busy Golden Week holiday period.
China’s share of global GDP is likely to rise by about 1.1 percentage points by the end of the year, according to a CNN Business calculation using World Bank data. That’s more than triple the share it gained in the previous year. By contrast, Europe and the United States will see their shares dip slightly.
China’s economy is expected to be worth about $14.6 trillion by the end of this year, roughly equivalent to 17.5% of global GDP.
Even without the disruption caused by the coronavirus pandemic, according to Larry Hu, chief China economist for Macquarie Group, China’s share would have ticked up this year. But Beijing’s ability to buck the worldwide trend is accelerating the growth in its importance to the global economy.
Hu said: “The recovery in China has been much stronger than the rest of the world.”
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