(Bloomberg) – China’s economy grew 2.3% last year as Covid-19 was the only large country to prevent economic contraction due to successful control.
This expansion was in the last quarter of 2020 compared to Last year increased by 6.5%, announced the statistics office on Monday, marking a return to the growth rates before the pandemic. Economists surveyed by Bloomberg had forecast growth of 6.2% for the quarter and growth of 2.1% for the full year.
The recovery was supported early on by fiscal and monetary stimuli that stimulated investments in infrastructure and real estate cranked. After China got the virus cases under control and factories resumed production, growth was fueled by strong overseas consumer demand for Chinese exports, particularly medical and homework equipment.
Getting out of the Pandemic larger than it started lays the foundation for a dramatic year for the world’s second largest economy, which began 2020 with a historic first quarter slump as coronavirus lockdowns brought most activity to a standstill.
With global production expected to decline 4.2% last year, China’s gains mean it has increased its share of the world economy to 14.5%, according to World Bank estimates, compared to 22% in the US based on projections of the International Monetary Fund, according to Nomura Holdings (NYSE: China), China will overtake the US by 2028, two years earlier than before says.
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Economists expect China’s GDP to grow by 8.2% this year, which will continue to outperform global benchmarks, even as other major economies begin to recover with the introduction of vaccines. < The ongoing rebound in 2021 will depend on whether China can prevent the widespread spread of viral infections and whether it can pass on spending from local governments and large state-owned companies to smaller businesses and consumers. Household spending and investment by manufacturing companies lagged overall growth in 2020.
An increasingly strained trade relationship with the US could also weigh on the outlook. In his final weeks in office, President Donald Trump tightened restrictions on Chinese corporations to curb the nation’s dominance in high-tech industries and confuse financial markets. It is still unclear how the in-depth administration under Joe Biden will address these issues.
Global demand for goods made in China is expected to remain strong as the pandemic continues to block large swaths of the world’s population. Even as a top exporter, the value of Chinese consignments rose by 3.6% in 2020 according to official information. Imports fell 1.1%, resulting in an annual trade surplus of $ 535 billion, the highest since 2015.
The fiscal and monetary stimulus to support the economy through the pandemic went hand in hand with an increase in debt , a development authorities are now looking to address as the recovery continues. At a December meeting to set economic targets for 2021, the ruling Communist Party signaled that incentives would be gradually withdrawn, although it would not avoid « sharp turns ». in politics.
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