China to buck global economic downturn in 2020 as coronavirus continues to drive down activity, says IMF

The IMF’s World Economic Outlook Update says China’s economy will grow 1 per cent this year and 8.2 per cent in 2021

Global economic output is forecast to fall 4.9 per cent, 1.9 percentage points below the estimate in April

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China’s economy will grow 1 per cent in 2020, better than other major economies like the United States and the European Union, the IMF says. Photo: AP

Published: 9:00pm, 24 Jun 2020Updated: 11:50pm, 24 Jun 2020

China is expected to post positive growth this year even as the global economy contracts 4.9 per cent in a coronavirus-driven plunge in output, the International Monetary Fund (IMF) said on Wednesday.

The IMF’s World Economic Outlook Update estimated China’s economy will grow 1 per cent in 2020, a downgrade of its April forecast, but better than other major economies like the United States and the European Union that will contract by 8 per cent and 10.2 per cent, respectively.

India, which had been forecast to post positive growth in April, was downgraded in the June report.

Supported in part by government stimulus, the world’s second largest economy is projected to rebound rapidly from its first quarter contraction, growing 8.2 per cent in 2021 – the highest growth of any country.

The Covid-19 pandemic has had a more negative impact on activity in the first half of 2020 than anticipated, and the recovery is projected to be more gradual than previously forecast

IMF

Its growth will contribute to the overall recovery of emerging markets and developing economies in 2021, which is projected at 5.9 per cent, the report said.