As the globe tentatively steps forward in the first steps of a fragile recovery from the recession caused by the Coronavirus, China’s economy seems to be striding forward with great confidence in comparison to the world’s other major powers.
Holding back the confidence of the majority of world powers in embracing a more solid economic recovery is the ever-climbing levels of new Coronavirus cases still appearing across most of the globe, prompting social distancing measures and business trading restrictions to be continued despite the negative impact on the respective nation’s economy.
China’s Gross Domestic Product (GDP) is posited to grow by 1.6% this year, while the global economy will see a contraction of over 5% in the same period according to projections from the World Bank.
China’s very stringent lockdown procedures and population-tracking policies implemented in an attempt to rapidly curtail the spread of Coronavirus has seemingly being rather effective. When combined with the Chinese government setting aside hundreds of billions of dollars for major infrastructure projects and stimulating spending among its citizens, the Chinese economy has enjoyed what seems to be a very rapid economic rebound from the initial devastating effects of the virus.
In addition, China’s share of global GDP is deemed likely to rise by just over a percent, which is three times the share of GDP that it managed to gain in 2019. Other major economies are set to dip slightly in their share of global GDP in contrast.
It seems China will be winning the global economic recovery for the time being, having acted rapidly and decisively to the threat of Coronavirus as compared to some other major world powers.