China Economy Forecasted to Grow 1.9% in 2020

The economy of China is forecasted to grow 1.9% for the year 2020, nearly twice as much as previously projected, as per report by the International Monetary Fund (IMF). China is the only major nation with an economy expected to expand despite the challenges raised by the coronavirus pandemic.

China’s economy retracted by a record 6.8% in Q1, following strict containment measures forcing millions to stay home, closing many businesses. In Q2 the economy recovered, expanding by 3.2%.

The IMF report says China’s exports have “recovered from deep declines earlier in the year, supported by an earlier restart of activity”

“While recovery in China has been faster than expected, the global economy’s long ascent back to pre-pandemic levels of activity remains prone to setbacks,”

The IMF reports the global economy will shrink 5.2% for the year 2020.

The report also issues a warning against investments in “dirty sectors” including coal, cement and steel that have led to an increase in China’s carbon emissions.