World Bank forecasts China’s economy to grow in 2021
According to the World Bank, China, the world’s first major economy to achieve economic recovery from COVID-19 with factories and consumer activities returning to before the outbreak, is projected to reach a new economic growth rate this year from 8.1% to 8.5%.
In Eastern Asia, China and Vietnam are the only economies that achieved a V-shaped economic recovery and return to the previous levels in 2020.
World Bank estimates that China will vaccinate 40% of its population by the beginning of this summer. Maintaining an optimistic estimation for a full-scale economic recovery, the World Bank declares that much more efforts are needed from its vaccination program to achieve immunization on such a scale.
In the developed markets, thanks to large-scale financial support and the relaxation of COVID-19 related restrictions, the US economy is expected to grow 6.8% this year.
The economic growth of other advanced economies is also gradually stabilizing at a smaller magnitude. The economic growth rate of emerging markets and developing economies will rebound moderately to 6% in 2021.
The report predicts that China’s economic growth will rebound to 8.5% in 2021, with a 0.6% increase from the previous estimate of 7.9%. In addition, China’s economic recovery has expanded to a consumption driven-scale from the previously public investment-driven status.