China to remain locomotive of the global economy in upcoming year

By Li Qiaoyi Source:Global Times Published: 2019/12/2 23:48:40

Nation to remain locomotive of the global economy in upcoming year

Graphics: GT

China's economy, second-ranked globally in nominal GDP terms and the largest based on an adjustment of GDP for purchasing power parity (PPP), will remain among the best performers in the global economic landscape in the upcoming year, China market watchers said.

Whether the economy can maintain 6 percent growth or not, it's poised to retain its leading position and continue to serve as the locomotive of the global economy, they noted.

Green shoots of recovery are expected to be seen in both domestic and overseas markets in 2020, Guo Xiaobei, a researcher with China Minsheng Bank, told the Global Times, estimating the Chinese economy will post full-year expansion of around 6 percent in the next year.

Guo cited China's implementation of various reform measures such as the ramped-up opening of the economy at an accelerated pace, monetary easing by major economies, hopes for a thaw in China-US trade tensions, and the UK's effort to block a no-deal Brexit.

That suggests China will continue to power up the global economy, and the feat won't be challenged by the possible scenario of growth falling below 6 percent, analysts said.

According to data from the World Bank, China's GDP in current US-dollar terms totaled $13.61 trillion in 2018, second only to the US with $20.49 trillion. Japan held the third spot with $4.97 trillion. 

Going by GDP in PPP terms, China was already the largest economy with $25.36 trillion last year, followed by the US with $20.49 trillion and India with $10.50 trillion. 

The nation also excelled as measured by annualized growth rates. India was the fastest-growing major economy with 6.98 percent expansion in 2018, ahead of China with 6.6 percent growth. The US economy was in third place with 2.86 percent growth, according to World Bank statistics. 

With US growth expected to moderate in 2020 and India still struggling to recover from the shock of its economy slumping to a more-than-six-year low of 4.5 percent in the July-September period from 7 percent a year earlier, the estimates that China will remain the power of the global economy seem to hold up well. 

China has topped the global rankings of contributions to global economic growth since 2006, according to a report released in August by the National Bureau of Statistics.

Newspaper headline: Nation to remain locomotive of the global economy in upcoming year


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