SOURCE / ECONOMY
China to lead global economic recovery in 2021: Standard Chartered
Published: Jan 07, 2021 03:02 AM

A China-Europe freight train runs through the national gate at Erenhot Port in north China's Inner Mongolia Autonomous Region, Sept. 4, 2020. Photo:Xinhua


China is expected to lead the global economic recovery in 2021, with only mild inflation, said a 2021 outlook report Standard Chartered sent to the Global Times on Wednesday. It also predicted that growth of the Chinese economy will accelerate in 2021.

The report said China's economic recovery is showing "strong momentum," helped by the country successfully containing the coronavirus, which has promoted the recovery of business activity and consumption and service-related sectors.

As coronavirus pressure still exists, China's decision-makers will continue to support enterprises, stabilize employment and maintain infrastructure spending, which will further consolidate the development momentum in the world's second-largest economy, the bank said.

Nevertheless, the report also mentioned risks such as potential conflicts with the US, which is also a risk to global economic recovery.

Due to its efficient control of the virus, China is expected to become the only economy to record positive growth in 2020. According to the World Economic Outlook of the International Monetary Fund, China's GDP growth in 2021 will accelerate to 8.2 percent compared to 2020, and the proportion of global growth contributed by China in 2021 is expected to reach 27 percent or even higher.

The Standard Chartered report also said that the world economy will recover from the "short but deep" recession in 2021.

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