The World Bank has just lifted its forecast for Chinese GDP growth in 2020, as the economy continues to convalesce from the impacts of the COVID-19 pandemic.
The World Bank sees the Chinese economy growing by 2% in 2020, according to its latest round of economic forecasts for the East Asia and Pacific region released on 28 September.
The latest forecast marks an increase of one percentage point compared to the forecast of 1% released at the start of June.
The World Bank sees the East Asia and Pacific region posting GDP growth of 0.9% in 2020 for the lowest level since 1967, and the region’s GDP contracting by 3.5% when China is excluded from figures.
The World Bank also forecasts Chinese GDP growth of 7.9% in 2021, based on expectations of the development of an effective COVID-19 vaccine, as well as 5.1% GDP growth for the broader region.
Aaditya Mattoo, chief economist of the East Asia and Pacific Region of the World Bank, said that the COVID-19 pandemic will cause 5 million people in the region to re-succumb to poverty.
Mattoo said that while many countries in the East Asia and Pacific region had successfully controlled COVID-19, they would still need to work hard to restore their economies and achieve growth.