China Central Bank Expects Country’s Economy To Grow 2 Pct This Year
China says it has the COVID-19 pandemic under control and will see its economy boosted by around 2 percent, according to Reuters.
Central Bank Governor Yi Gang made the announcement on Sunday (Oct. 18), which Reuters writes signals a recovery of domestic demand.
On Monday, the closely-monitored gross-domestic product (GDP) data is expected to be released, and Yi said the data will likely show China’s growth.
“I think the accumulative growth for the first three quarters of this year will be positive … For the whole year, we predict China GDP growth of around 2%,” Yi said. “The Chinese economy remains resilient with great potential. Continued recovery is anticipated, which will benefit the global recovery.”
The fiscal and monetary policies from China will help small and medium-sized businesses (SMBs) survive the economic effects of the crisis. The policies will ensure that domestic demand plays a larger role in determining growth as well, according to Reuters.
According to Yi, China’s currency rate has been appreciating as compared to the U.S. dollar “significantly” for the past few months, which reflects interest differentials that meant the development should be left to market forces, Reuters writes.
“Monetary policy should focus on domestic demand, domestic inflation targeting … and let the market decide the exchange rate,” he said, according to the news report.
In the second quarter, China’s economy saw a 3.2 percent boost year-over-year, with the boost a contrast to many other world powers still feeling the effects of the pandemic. The country saw its economy shrink 6.8 percent during the first quarter from January to March as the pandemic devastated the way of things there, marking the first such downward turn since 1992.
But data from multiple sources indicated a turnaround as the country recovered, and The Wall Street Journal (WSJ) said the country’s second-quarter growth led to an 11.5 percent rebound from where it had been earlier in the year.