SHANGHAI – China To Narrowly Avoid Recession In Virus-Hit 2020. The International Monetary Fund, on Tuesday, has forecasted that China is likely to narrowly avoid recession this year. Chinese economy is likely to bounce back strongly in 2021 if the coronavirus stops.
According to details, the pandemic has hammered the world economy, with millions of jobs lost and businesses shut. All this because of unprecedented lockdown measures to slow the spread of the disease.
However, the IMF said in its latest World Economic Outlook that China, unlike other major economies, will scrape through 2020 without going into recession. It predicted growth of 1.2 percent growth for China this year. This is the slowest expansion in more than four decades.
IMF has forecast China to bounce back next year with 9.2 percent. But economists have warned that China, where the virus first emerged late last year, will depend on recovery in other parts of the world. And the Chinese government’s domestic measures like increased credit will have a limited effect as long as the rest of the world is in turmoil, analysts said.
The global economy is projected to contract by three percent this year. This is much worse than during the 2008-09 financial crisis, according to the grim IMF forecast. It also added that there was “extreme uncertainty”, and the situation could get much worse.
China To Narrowly Avoid Recession In Virus-Hit 2020.