The International Monetary Fund’s World Economic Outlook, which was released in October, revealed that China was likely to be the only economy in the world to experience positive economic growth in 2020. China’s GDP is estimated to increase 1.9% this year after growing by 4.9% in Q3. The 8-day National Day holiday in October helped to boost the economy in the third quarter, especially within the hospitality and domestic travel sectors.
China’s effective control of COVID-19 and strong domestic demand has helped the country recover more quickly than most economies. Indeed, China’s economy looks set to strengthen further next year with a projection of 8.2% GDP growth in 2021. New emerging industries powered by technological innovation, such as smart homes, new energy and the biomedicine industry, will help drive this growth.
Following the outbreak of COVID-19, China’s congress decided to eliminate its GDP target for the first time in decades in May. They instead said that the government would focus on inflation, job creation and unemployment rates.