The International Monetary Fund (IMF) said in its latest Outlook Report that China’s Resilience amid the COVID-19 Pandemic could have a positive spillover effect on the rest of the world.
In a recent interview, Kristalina Georgieva Managing Director of the IMF, concluded two things that contributed to the projections for the Chinese Economy to ameliorate.
“What happened in China is very much in line with what happened in the rest of the world, but accelerated in time and very effectively applied. China put in place massive fiscal and monetary stimulus.
And China has been very effective in containing the spread of the virus. These two factors have led to the positive development in China that allows to upgrade China’s growth this year. This is going to be good for China, it is also good for the world economy,” she said.
China has been adjusting its economic development model in the past, and it is now paying more attention to environmental and societal development. So under the context of global economy, she mentioned that China has lifted its ambition with regard to tackling the climate crisis while fighting against the pandemic.
“President Xi Jinping announced that by 2060 China aims to get to net zero emissions and that of course has a signaling impact on what direction growth in the country would take. Clearly, it would be directed towards greener growth, more renewables.
Hopefully we will see also China, as it engages in economic cooperation around the world, to translate this ambition into the types of projects it supports, especially with the very ambitious Belt & Road Initiative.
When we look at the structure of the Chinese economy, the fact that digitalization has been booming everywhere, including in China, is again giving a boost of this domestic consumption-driven part of the economy that is oriented towards services,” she said.
Also, “The Financial Times” published a commentary entitled “The global economic recovery is dramatically uneven”, subtitled “China leads and the rest of the world lags behind” on Tuesday.
China has managed to contain the outbreak and revive its economy, and is the only country in the world with positive economic growth this year, and economies such as the United States and the European Union will see sharp decline as the outbreak remains unsolved, the commentary said.
The commentary also said that the experience of a few Asian Countries, such as China, in controlling the outbreak have provided the best way for the global economic recovery.