International institutions are optimistic about China’s economic development prospects
Recently, the World Intellectual Property Organization released the “World Intellectual Property Indicators” annual report. The report shows that China has applied for 1.4 million patents in 2019, ranking first in the world. The number of patent applications in Asia accounted for nearly two-thirds of the world’s total, which was mainly due to the promotion of China’s economic growth.
As the global economic situation in the post-epidemic era is not optimistic, China’s economic growth headwinds has attracted widespread attention from foreign investment institutions. The OECD predicts in the latest World Economic Outlook report that China will still be the only major economy to achieve positive growth this year. The annual economic growth is expected to be 1.8% and the economic growth in 2021 is expected to reach 8%.
When evaluating China’s economic development prospects, Schroder, a foreign-funded institution, recently said: “The economic recovery is strong, and China is breaking the waves.” The consumption potential and development pattern in China’s new economy and new business formats have attracted much attention.
Zhu Chaoping, a global market strategist at JP Morgan Asset Management in Shanghai, said: “Many restaurants in China are full, with long lines at the door and factories operating at full capacity. The reason for all this is that the epidemic is under control in China.”
The American “Forbes” magazine pointed out that the entire Western world is facing the closure of thousands of small businesses and is preparing for the “dark winter”, while China’s economy is accelerating. The annualized growth rate of China’s industrial profit in October this year soared to 28.2%, an increase of 18.1% since September, which was attributed to the growth of manufacturing and investment.
“The Wall Street Journal” reported that in November, China’s exports increased by 21.1% year-on-year, imports increased by 4.5%; the trade surplus increased by 102.9%, and the official manufacturing purchasing managers’ index (PMI) rose to 52.13. This shows that nearly a year after the global outbreak of the new crown pneumonia epidemic, the recovery of the world’s second largest economy is expanding.
An article on the NBC website stated that there are various signs that in the post-epidemic era, China’s economic recovery is faster than other major economies.
The Greek Shipping News Network analyzed in an article that there are three main reasons for China’s rapid economic recovery: one is that China quickly contained the new crown pneumonia epidemic; the other is that China is planning a new development pattern of “domestic and international dual cycles”; China continues to remain open to foreign investment, and foreign companies in China will continue to invest in China.
The OECD report believes that the future use of the new crown vaccine and the continuous acceleration of China’s economic recovery will help boost market confidence and promote the recovery of the world economy. The global economic recovery will show an uneven trend, and China’s economic recovery will be earlier than other countries.
According to an article published on the CNBC website of the US financial media, Fitch Ratings predicts that China’s GDP will grow by 8% in 2021. Analysts pointed out that there has been a significant recovery in Chinese consumption in the past few months, especially in the catering industry and other social events.
The international economic research company Capital Macros said that China’s GDP will be boosted substantially next year. The company’s analysts predict that China’s economy will grow by 10% in 2021, which is higher than the current market consensus of 7.9%. The latest research report reads: “Although the consensus of analysts has become more optimistic in recent months, we believe that there is still room for further exceeding expectations.”