Many International Institutions Upgraded Forecast for China’s Economic Growth, China Likely to Be the Only Major Economy to Post Positive Growth

Source:Organizing_Committee    |      Date:2020-09-22

  The Organization for Economic Cooperation and Development (OECD) recently released a report saying that the overall world economy would decline by 4.5% in 2020, while China's economy would grow by 1.8%. China would become the only country in the G20 that achieves positive growth. Since the Q2 of this year, China's economy has been recovering steadily, and many international organizations have recently upgraded their forecast for China's economic growth in 2020. These institutions agreed that China was not only expected to become the only major economy that could achieve positive growth, but would also continue to inject impetus into global economic development.

  Many international institutions cast votes of confidence

  According to a report recently released by the Organization for Economic Cooperation and Development (OECD), the overall world economy would decline by 4.5% in 2020, while the Chinese economy would grow by 1.8%. This makes China the only country in the G20 that has achieved positive growth. Among them, China's GDP in the Q2 rose 3.2% year-on-year, the highest growth rate among the member states.

  As the COVID-19 continues to spread globally, China's economy has delivered a satisfactory result. Many international institutions have also cast votes of confidence for China's economy in H2.

  The international rating agency Fitch updated its Global Economic Outlook in September, which revised China's economic growth forecast for 2020 from 1.2% in June to 2.7%. Moody's Investors Service, another international rating agency, also raised China's growth rate from 1% to 1.9%.

  “China’s recent economic data has surprised the market. With the continued policy support, China’s economy continued to recover in Q2 and Q3 driven by investment and exports. Consumption will be the biggest boost to the economic recovery in Q4. China’s economy is expected to grow by 5.5% to 6% in H2." said UBS GWM CIO.

  China injects impetus into global economic development

  China's economic recovery has also injected new impetus to global economic development. As the first major international economic and trade event held both online and offline in China since the outbreak of COVID-19, the 2020 China International Fair for Trade in Services (“CIFTIS”) has attracted a total of 22,000 enterprises and institutions from 148 countries and regions to participate online and offline, and more than 100,000 visitors on site. The relevant person in charge of the Ministry of Commerce expressed that, in the next 15 years, China's import services would exceed USD 10 trillion.

  At this CIFTIS, the display and exhibition covering all 12 major areas of trade in services were held, and 80 trading groups of central SOEs, 16 trading groups of central financial SOEs and 38 trading groups of provinces, autonomous regions and municipalities were set up. A total of 33 international organizations, 68 embassies in China, 110 foreign business associations, and 199 Fortune 500 companies participated in the fair. Deals were actively concluded at this CIFTIS, with a total of 240 agreed projects signed, new ideas fully exchanged, new services displayed and new achievements released.

  The CIFTIS is held both online and offline, which is a highlight of this event. For the 2020 CIFTIS, there were 7.2 million views on official website and 8.05 million views on official APP; a total of 5,372 domestic and foreign companies have set up online electronic booths, including 2,037 3D booths; 32 online conferences and 173 online live conferences were held. After the conclusion of the CIFTIS, the online CIFTIS platform will continue to be opened. Within a certain period of time, it will provide free online registration, electronic booth building, business talks and contract signing and other services for enterprises, in an attempt to establish a dynamic optimization mechanism for enterprises.

  At the closing press conference of the 2020 CIFTIS, Xian Guoyi, Director of the Department of Trade in Services and Commercial Services of the Ministry of Commerce, indicated that the CIFTIS has achieved positive results, fully demonstrated the remarkable results achieved in China’s epidemic prevention and control and economic and social development, manifested China's firm confidence in continuing to open wider, and has sent a strong signal that China has been committed to advancing economic globalization and deepening international economic and trade cooperation. The Ministry of Commerce would issue a negative list on cross-border trade in services in both the national and free trade zones versions within this year to strengthen institutional opening-up.