China set to be lone major economy to show growth this year

Published Wed, Nov 25, 2020 · 09:50 PM

Beijing

CHINA is set to become the only major economy in the world to experience growth this year. Analysts are upbeat on the Chinese economy's prospects for 2021, estimating gross domestic product (GDP) to grow by over 8 per cent. However, the recovery also poses many questions on its sustainability as inventories pile up and as bond defaults accumulate.

The world's second-largest economy has proved particularly resilient after its GDP plummeted by a record 6.8 per cent in the first quarter.

An estimated 230 million people were out of a job in February as the country essentially came to a halt as the coronavirus affected one city after another.

Since then, the latest statistics point towards a strong V-shaped recovery that has run through the whole economy from trade to production and investment, and is now trickling down to consumer demand. The services sector is well on track to surpass its pre-Covid le…