The International Monetary Fund expects the Chinese economy to expand by 8.2% next year, second only to the 8.8% projected growth for India, according to its October world economic outlook report, reported Caixin.
Tighter monetary policy may be the factor that most restrains China’s GDP growth in 2021 as it will slow growth in infrastructure and property investment in the second half. Another drag could be the decline in exports of pandemic prevention products if the Covid-19 pandemic eases up, reported Caixin.
Nonetheless, China’s economic growth is expected to accelerate to 8.2% or even higher in 2021, due to this year’s low baseline, the country’s success at controlling the coronavirus and presumably less tense relations with the US.
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