The World Bank (WB) has projected a steep economic growth for China in FY 2020-21 at 7.9 percent, reflecting the release of pent-up demand and a quicker-than-expected resumption of production and exports.
The global lender also predicted that in the rest of the East Asian region, growth is anticipated to be more protracted and output is expected to remain 7.5 percent.
According to the Global Economic Prospect report, despite a sharp slowdown to 0.9 percent in 2020, output in East Asia and Pacific (EAP) dominated by China is projected to expand around 7.4 percent in 2021.
In a report on Tuesday, the World Bank said, the global economy is expected to expand 4 percent in 2021 after shrinking 4.3 percent in 2020. Although it has warned that rising Covid-19 infections and delays in vaccine distribution could limit the recovery to just 1.6 percent this year.
The World Bank's semi-annual forecast showed the collapse in activity due to the coronavirus pandemic was slightly less severe than previously forecast, but the recovery was also more subdued and still subject to considerable downside risk.