Projected Growth for China Hits Peak Level
The Center for European Economic Research (ZEW) has released its latest economic expectation survey for the Chinese economy, and the news is looking promising.
In collaboration with institutions such as the School of Economics and Management at Tsinghua University in Beijing and the Chinese Academy of Social Sciences (CASS), ZEW has revised its growth forecast for 2021. The new forecast shows a significant increase, with a projected growth of 6.4 percent, up from 4.7 percent in the previous month.
This positive trend also extends to the assessment of the current economic situation in China. Although the current situation assessment has only been higher once, back in April 2018, it has improved from the previous reading.
The improved outlook is also reflected in the respondents' expectations for real gross domestic product (GDP) growth for the year 2020. The forecast now stands at 3.4 percent, up from 1.9 percent in the previous month.
However, not all regions in China are expected to benefit equally from this economic growth. Economic development in the regions of Chongqing, Tianjin, and other important economic areas is forecast to be below average.
Despite these regional discrepancies, experts are optimistic about a full normalization of Chinese economic growth for next year. This optimism is further reinforced by the CEP indicator for the Chinese economy, as measured by ZEW and Fudan University in Shanghai. The CEP indicator has reached a new record high of 55.0 points, up by 5.0 points from its previous reading.
The assessment for Hong Kong's economy remains pessimistic, with a forecasted decline in economic performance.
A photo of a cyclist in Beijing, taken by dts Nachrichtenagentur, provides a visual context to this news. The cyclist, much like the Chinese economy, seems to be moving forward, albeit with some challenges along the way.
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