China’s recovery allows for gradual withdrawal of policy stimulus – MENAFN.COM

China’s recovery allows for gradual withdrawal of policy stimulus – MENAFN.COM

Doha: China has been for years one of the main engines of growth for the global economy. In fact, China's expansion amounted to more than 40 percent of total global growth over the last ten years. More recently, as the world started to move towards a post-pandemic economic recovery, China continued to lead the way. After a sudden collapse in demand and activity in Q1 2020, when China's GDP contracted by 6. 8 percent year-on-year, the country performed an impressive recovery. According to the IMF, China is estimated to have been the only large economy to present positive GDP growth last year. Moreover, positive momentum from the last few quarters is expected to continue and the country is set to show a significant performance in 2021, with GDP expanding by 8. 1 percent. China is therefore not only going to outperform the major economies of the G-7 (US, Japan, Germany, France, UK, Italy and Canada) but also the dynamic emerging market economies of the ASEAN-5 (Indonesia, Thailand, Malaysia, Philippines and Vietnam). China's economic strength can be explained by several factors, including an outstanding capacity in handling the health crisis through mass testing, virus tracking and effective social distancing as well