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China’s economy may expand by 9 per cent in 2021, helping to overtake US sooner
- China was the first major economy to show a recovery from the damage caused by the coronavirus pandemic in 2020, largely due to a series of stimulus measures
- Nomura and China International Capital Corporation put China’s gross domestic product growth for 2021 at 9 per cent
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China’s economic growth could reach as high as 9 per cent next year, and its rapid rebound from the coronavirus pandemic may help the economy overtake the US to become the world’s largest later this decade, analysts said.
But Beijing is likely to roll back some of its stimulus measures used to offset the coronavirus damage amid concerns over its record-high debt level, they added.
Expectations over China’s economic outlook have turned bullish in recent weeks, with the world’s second-largest economy leading the global recovery from the impact of the coronavirus with its robust export growth, strong government spending and a low infection rate.
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Given China’s rapid rebound, the Centre for Economics and Business Research, a British think tank, predicted last week that China will overtake the United States to become the world’s biggest economy in 2028, five years earlier than previously estimated.
In contrast, many other countries have been forced to resume lockdown measures to control the spread of the coronavirus.
Even though China’s exports remain resilient this year, it could face problems from poor global economic outlook and shrinking international trade
China’s recovery has seen a number of brokers, including Nomura and China International Capital Corporation (CICC), predict its gross domestic product (GDP) growth for 2021 will be 9 per cent.
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