China’s economy was earlier predicted to contract but new estimates show that the country may post growth during the year.
Ray Fisman, economics professor at Boston University, shared an article on how China is the only G20 country expected to witness a positive economic growth in 2020, according to the Organisation for Economic Cooperation and Development (OECD).
The OECD has revised its forecast for China’s growth to 1.8% from the previous forecast of 3.7% contraction in June.
China has brought the coronavirus outbreak under control and has been able to reopen businesses enabling a quicker economic rebound than previously expected.
China’s recovery, however, will not be a driver for global growth, as the country’s economy is now more dependent on domestic consumption rather than exports.
The OECD also noted that the global economy is slowly moving towards recovery as household spending on consumer durables increased.