What Will The Chinese Economy Be Like In 2021?

Liu Shijin, a policy adviser to the People’s Bank of China, says GDP could grow 8-9% in 2021, under “normal conditions,” and by more than 15% on an annual basis in the first quarter of this year.

This will be the result of 2020’s low base level, and it will not mean that China has returned to a period of high-growth said Liu Shijin, a policy advisor at the People’s Bank of China.

Liu added in a web conference that averaging growth out over the two years if it should hit around 5% is not “bad”.

The Chinese GDP had recorded a growth of 2.3% last year in light of great disruptions caused by the Coronavirus pandemic.

The Chinese economy, like other economies of the world, was hit by the COVID-19 crisis and the lockdown measures that were imposed to limit its spread.

On February 25 Chinese President Xi Jinping declared that China has scored a “complete victory” in its fight against poverty by lifting over 770 million people out of it in the last four decades, calling it another “miracle” created by the country that will go down in history.

Absolute poverty has been eradicated in the world’s most populous country, Xi announced while addressing a gathering held here to mark the country’s accomplishments in poverty alleviation and honor its model poverty fighters. Furthermore, Xi said that all poor people in rural areas have been lifted out of poverty.

Jinping said that “since the beginning of the reform and openness policy in the late seventies, 770 million rural people have been lifted out of poverty,” noting that “during this period, China contributed by 70% to the global war against poverty. And with such successes, China has created another miracle that will be written down in history.”

The World Bank says China has lifted more than 800 million people out of extreme poverty since implementing market reforms in the 1970s, after decades of government planning.

“For the vast majority of Chinese, the standard of life has improved dramatically within a generation,” said Martin Raiser, World Bank director in China.

This comes in conjunction with China’s provision of “assistance to developing countries” that are still grappling with poverty, according to Xi.