By Chathushka Perera
Beijing, China (CWBN)_ Global markets crashed after the Covid-19 virus spread faster than Californian wildfire, reaching even the most isolated of tribal communities, with a recovery in the next six months becoming growing scarcer.
According to an International Monetary Fund (IMF) report issued two weeks ago, despite the drop in growth rates worldwide, China, has started to show signs of a positive turn after a ‘V’ shaped economic recovery, having managed to contain the virus after the outbreak first began in Wuhan, Hubei Province. It is also the only economy expected to show positive growth this year.
An expansion of 1.9% in its GDP has been projected with good omens of it reaching as high as 8.2% in 2021. Should the contributions of Chinese growth to the global average be disregarded, the cumulative growth rate for 2020 and 2021 would in the negative.
Meanwhile, Bloomberg reported that it expects the sect of global growth rates assisted by China would grow by 26.8% in 2021 and 27.7% in 2025, and would be about 15-17% higher than that of US.
These signs are perhaps already starting to show.
As global focus has been overwhelmed by the up-coming US Presidential Election (2020), China has been manoeuvring its investments and industries, and the expanding economy has resulted in higher import demands (13.2% boost in September), which has enabled the industrial cogs of China’s neighbours to start turning again.
Reportedly, Japan is starting ease owing to China’s recovery, as Chinese market amounts to 22% of Japanese exports, indicating a 14% recovery in September. This is particularly the case in terms of the automobile industry.
South Korea and Taiwan, together recorded a 28% rise in semi-conductor imports, which comprises the leading branches of the countries’ economies.
However, the fate of these recoveries are dependent on the approach taken by the next White House administration. Should there be any further escalation in the US-China trade war, regional economies would begin to feel the brunt of China’s loses.
