Home Asia China is the Growth Story

The International Monetary Fund raised its 2021 growth forecast for China to 8.4 percent on Tuesday, as it projected a stronger global rebound from the pandemic but warned of “divergences in the speed of recovery”.

The figure is 0.3 percentage points above the IMF’s January prediction and would mark the country’s strongest growth rate since 2011, after the world’s second largest economy became the only major one to expand last year.

China has enjoyed a strong rebound since strict lockdowns across the country brought activity to a near-halt in 2020 after Covid-19 first surfaced in the central city of Wuhan.

The IMF said “effective containment measures, a forceful public investment response, and central bank liquidity support have facilitated a strong recovery”.

China’s GDP grew 2.3 percent in 2020 — the slowest pace in more than four decades — and although leaders set a modest target of more than six percent this year, analysts widely expect a much higher number.

“China had already returned to pre-Covid GDP in 2020, whereas many others are not expected to do so until well into 2023,” said the IMF.

Its forecast for China is much higher than other major economies including the United States, Germany and France, although behind India.

The IMF expects growth to slow to 5.6 percent next year, a projection unchanged from January.

Despite the strong showing, it also warned geopolitical tensions between Washington and Beijing could weigh on recovery.

“Tensions between the United States and China remain elevated on numerous fronts, including international trade, intellectual property, and cybersecurity,” it said.

Meanwhile, it expects mild fiscal tightening for China and monetary policy to remain supportive this year.

You may also like

logo-white

Your Trusted Source for Capital Markets & Related News

Latest Articles

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.