China remained the single largest economy in 2020, achieving positive growth. Which means the economy grew rather than dwindled. China’s economic growth rate was 2.3 percent last year. Experts say that despite the Corona epidemic and America’s trade war, it shows the strength of the Chinese economy. It is now estimated that China’s GDP will be 8.2 percent in 2021. This estimate is from the Bloomberg Survey. According to this, this year also China can remain the fastest growing economy in the world.
There is a general consensus among the world’s economic think tanks and experts that at the moment, China, the world’s number two economy, can reach the first position before the projected time. This is also because America, the number one economy, is currently in deep trouble. Homi Kharas, deputy director of the Global Economy and Development Program at the US-based Brookings Institution, told website Russia Today that China was the only major economy in 2020 that did not fall prey to recession. Last year, China’s share in the global economy increased at the fastest pace of this century. Last year, the global economy declined by 4.2 percent. In this way, China’s share in it reached 14.5 percent in dollar value.
Economists have noted that China is now pursuing a policy of deepening its economic relations with Asia and Europe and promoting domestic consumption. Last week, Chinese President Xi Jinping said that time and conditions are in China’s favor at the moment.
According to UNCTAD, China has once again become the largest center of foreign investment in the world. In November 2020, there was $ 129.5 billion of foreign investment. It is once again noteworthy that this increase occurred in China when FDI declined by 30 to 40 percent in 2020. In this regard, Chang Shu, chief economist for Asian affairs at UNCTAD, has said that the growth pattern is important for the global economy, not just the growth recorded in China. China has been insisting on increasing domestic consumption for continued economic growth. This will make China a major producer as well as a major consumer for the rest of the world in the long term.
Ka Zheng, director of Asian studies at the US University of Arkansas, told Bloomberg that the epidemic may help China strengthen its position in the global economy. It is possible that after the epidemic, China becomes the only major source of growth in the world. Economists have noted that China’s exports grew by 3.6 percent in 2020. This growth is significant when global business declined by 5.6 per cent. These figures are from UN Trade and Development Agency UNCTAD.