BUSINESS China's Q1 GDP likely to log double-digit growth

BUSINESS

China's Q1 GDP likely to log double-digit growth

Xinhua

07:19, February 04, 2021

File photo

BEIJING, Feb. 3 (Xinhua) -- China is expected to see a faster economic recovery in the first half of 2021, with its gross domestic product (GDP) in the first quarter likely to log double-digit growth, an expert has said.

Due to the low base in 2020, the country's GDP will rebound faster in H1 this year, according to Chen Changsheng, director-general of the Department of Macroeconomic Research under the Development Research Center of the State Council.

"We should view the figure rationally," Chen said, adding that the high GDP growth in Q1, if achieved, will not necessarily mean that the country's economy is overheating.

With the low-base factor excluded, the month-on-month GDP data shows that China will see steady economic growth through 2021, said the expert.

Chen warned of the premature withdrawal or sudden strengthening of policies and stressed efforts to ensure that the country's economy runs within a reasonable range.

However, the country should also notice the challenges, risks and uncertainties at home and abroad, including the spillover effect of the easing of policies in major economies, large fluctuations in the dollar exchange rate, debt default and financial risks in the real estate and financing sectors.

As China has set the target of making its per capita GDP reach the level of moderately developed countries by 2035, twice that of 2020, Chen said that the country will need to keep a 4.7-percent GDP growth each year.

In 2021, the economic growth will rely on the recovery of the micro, small and medium-sized enterprises as well as the resumption of consumption activities, the expert said.

The top priority is to restore consumption as soon as possible, Chen said.

The country should formulate measures and policies to support consumption, continuously improve residents' income and restore their consumption confidence, Chen added.

He also called for improving the quality of the country's economic development and nurturing new growth drivers through green transformation, urban renewal and participation in global governance.


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