China News Service, Washington, July 28. The World Bank’s "China Economic Bulletin: Moving Forward: Responding to the Impact of the New Crown Epidemic and Advancing China’s Reform Agenda" released on the 28th local time by the World Bank said that the new crown pneumonia epidemic has had a great impact on the Chinese economy. The economic recovery after the epidemic has provided China with an opportunity to promote economic rebalance and achieve more inclusive, sustainable and green growth.
According to the report, affected by the epidemic, the global economy is expected to shrink significantly this year, and more than 90% of emerging markets and developing economies will experience a decline in per capita income. Despite the unprecedented stimulus policies of major economies, the world still faces clear downside risks. According to baseline forecasts, China’s economic growth rate will slow to 1.6% this year and rebound to 7.9% in 2021.
The report said that even if economic activity rebounds, the impact of the epidemic is likely to have a lasting impact on the economy. In terms of downside risks, despite China's tremendous efforts to prevent and control, the epidemic may still rebound, disrupt economic activities and weaken business confidence and consumer confidence. From an external point of view, if there is a more serious and prolonged global recession than expected, and the further escalation of bilateral tensions between China and its major trading partners, it will also derail the economic recovery.
The report also pointed out that despite the high risks, forward-looking recovery strategies and good policies can partially mitigate the risks. The economic recovery after the epidemic has provided China with an opportunity to promote economic rebalance and achieve more inclusive, sustainable and green growth. Among them, monetary and financial sector policies need to be flexible; fiscal policies should play a major role in supporting economic recovery; structural policies should focus on promoting resource redistribution and economic adjustment after the epidemic.
The report also said that since late February, the number of new infections in China's epidemic has dropped significantly, and restrictions on economic and social life have been gradually relaxed. Effective control of any emerging epidemics will remain the short-term focus of ensuring a safe recovery. In the long run, multi-sectoral cooperation can be adopted to detect and reduce public health risks, actively carry out case monitoring and real-time reporting, enhance response capabilities and strengthen international cooperation. (Finish)