China announced on January 18 that its GDP growth was 2.3 percent in 2020. In 2019, the figure was 6.1 percent. Ahead of these figures, the World Bank Global Economic Prospect report published on January 5 predicted that Chinese GDP would grow by 7.9 percent in 2021, and global GDP by 4 percent.
The prediction was based on ongoing “proper pandemic management, effective vaccination and continued monetary policy accommodation accompanied by diminishing fiscal support.” But due to lasting damage from the Covid-19 pandemic, global GDP is forecast at 5.3 percent below pre-pandemic projections - or about US$4.7 trillion, the World Bank said.
Led by higher consumption and a quicker-than-expected recovery in exports, the World Bank raised its growth prediction for China, with the country helping to boost the outlook for the East Asia-Pacific, with regional GDP expected to grow by 7.4 percent.
The report warned the pandemic may “steepen the long-expected slowdown in potential growth over the next decades,” as it has caused debt levels to reach historic highs which make the global economy vulnerable. “Limiting the spread of the virus, providing relief for vulnerable populations and overcoming vaccine-related challenges are key immediate priorities... Global cooperation is critical,” the report concluded.
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