While much of the world scrambles to prevent new coronavirus cases from stalling the fragile recovery from recession, China’s economy is hitting its stride again and will end the year more influential than ever.
The world’s second largest economy was the only major world power to avoid a recession this year as Covid-19 forced lockdowns and crippled businesses. China’s GDP is expected to grow 1.6% this year, while the global economy as a whole will contract 5.2%, according to summer projections from the World Bank.
China built its relatively quick recovery through several measures, including stringent lockdown and population tracking policies intended to contain the virus. The government also set aside hundreds of billions of dollars for major infrastructure projects, and offered cash incentives to stimulate spending among its populace. The payoff has been evident, as tourism and spending rebounded during last week’s busy Golden Week holiday period.
By the end of the year, China’s share of global GDP is likely to rise by about 1.1 percentage points, according to a CNN Business calculation using World Bank data. That’s more than triple the share it gained in 2019. By contrast, the United States and Europe will see their shares dip slightly.
All told, China’s economy is expected to be worth about $14.6 trillion by the end of 2020, roughly equivalent to 17.5% of global