Will China’s Economy Work In 2021
by Arina Smith Finance 25 June 2021
As the only major economy in the world to achieve positive economic growth in the past year, how will China’s economy move forward in 2021? Visit here for Chinese business documents.
With a large population base and domestic market, increasing urbanization rate, and improving people’s livelihood to stimulate new consumption power ……, the favorable factors for China’s economy to enhance are evident in the opening year of the 14th Five-Year Plan.
In 2020, China’s urban survey unemployment rate dropped from 6.2% in February to 5.2% in November; in the first three quarters, the national per capita disposable income, net of price factors, increased by 0.6% year-on-year ……
What Will Be The Growth Rate Of China’s Economy?
China’s urbanization rate is expected to reach about 65% in 2025. It is entirely possible to reach or even exceed the current economic standard. Similar to high-income countries by the end of the 14th Five-Year Financial Plan for China’s economy.
Even there is a chance that the total economic value and the income amount will be twice by the end of 2035. As long as an appropriate economic growth rate is maintained and the exchange rate of the RMB against the US dollar is stable.
The Economic Blue Book: Analysis and Forecast of China’s Economic situation in 2021, published by the Chinese Academy of Social Sciences, points out that a series of counter-cyclical control policies have achieved apparent results.
With significant economic indicators continuing to recover, industrial production growth accelerating, service industry production index growth gradually increasing. And the product and industry growth surface continues to expand and take the leading role to improve China’s economy.
The OutLook For China’s Economic Growth In 2021
National think tanks and analysts generally expect that China’s economic growth will return to its normal operating track. The IMF, World Bank, and OECD forecasted China’s GDP growth rate for 2021 at 8.2%, 6.9%, and 6.8%, respectively, showing the global confidence in the recovery of China’s economy.
China has chosen innovation as the first driving force to lead its development. The Fifth Plenary Session of the 19th CPC Central Committee has clarified that self-sustainability and self-improvement in science and technology will be the strategic support for national development.
In 2019, the contribution rate of China’s scientific and technological progress reached 59.5%; the World Intellectual Property Organization assessment shows that China’s innovation index ranks 14th in the world, maintaining an upward momentum.
With the new crown vaccination and the gradual implementation of the strategy to expand domestic demand, consumption will also be boosted and upgraded. The consumption suffered from the most significant impact of the epidemic. The slowest recovery rate and the most enormous base effect is expected to rebound to about 12% of retail sales of social consumer goods this year.”
The Industrial Growth Rate In China’s Economy
The first three-quarters of China’s economy of 2020, the values are added with China’s industrial high-tech manufacturing industry. Above the scale grew by 5.9% year-on-year, 4.7 percentage points higher than the growth rate of all industrial value-added above the scale in the same period.
From January to August, the business income of the high-tech service industry, science and technology service industry, and strategic emerging service industry above the scale also snowballed. New enterprises led by new technologies are bringing stronger and stronger momentum to the economy.
The latest data released by the National Bureau of Statistics shows that the cumulative profit growth of industrial enterprises continues to pick up steadily after achieving a positive turn from negative.
From January to November 2020, industrial enterprises above the scale achieved a profit of 574.45 billion yuan, up 2.4 percent year-on-year. The growth rate accelerated by 1.7 percentage points compared with January to October. 25 of the 41 major industrial sectors increased their total profit year on year.
China’s industrial structure upgrade trend will be more pronounced. Information transmission, software, and information technology services continue to grow. The manufacturing investment will resume growth, science and technology innovation will give rise to more new development in China’s economy. China’s economic planning and financial plannings have the full potential to flourish within a few years. What is your opinion? Do not forget to share your opinion in the comment sections.