IMF confirms China's record growth
The new estimates of the International Monetary Fund in April confirm the record growth of the Chinese economy in the two-year period 2020-2021.
Growth of the Chinese economy
China is the only one of the major countries that in 2020 (+ 2.3%) marked positive growth, will continue its trend with + 8.4% in 2021 (+0.3 compared to January data) well above the prudential estimate of over 6% confirmed by the Party in the Two Sessions of Beijing.
According to the latest data, the Euro-zone will see gross domestic product (GDP) grow by 4.4% in 2021 (+ 0.2% compared to January data), while Italy should grow by 4.2% in 2021 (+ 1.2% compared to January data).
In the two-year period, Beijing grows well above the average of the world economy (-3.3% in 2020 and + 6% in 2021) and consolidates its development with a series of records during the pandemic. Also for 2022 the International Monetary Fund expects a greater acceleration for China + 5.6% compared to future estimates for the United States and Europe
Record China in 2020
China in the year of the health emergency recorded a number of records in its development. In 2020 it recorded the largest volume of exports and the greatest value in trade with other countries and has established itself as the first destination for foreign investments.
According to Chinese Customs data, total imports and exports of goods increased in 2020 to over $ 4.6 billion. Exports increased by 3.6% with a surplus on the global trade balance of approximately 27 billion dollars. Beijing achieved the largest trade in 2020 with the countries of South East Asia (+ 6.7%) and with the European Union (+ 4.9%)
Foreign Direct Investments (FDI) in mainland China increased by 6.2% to a record high of 999.98 billion yuan in 2020, according to estimates by the Ministry of Commerce.
The main investments were made in the high-tech industrial sectors and in the tertiary sector. Foreign investment in the service sector is estimated at 776 billion yuan in 2020, up 14% year-on-year and showing the trend of an economy aiming for mature development. The high-tech industry has seen an increase in capital flow from abroad by 28% with investment in research and development increasing by 79%.
Cities and provinces with the greatest growth
In the geography of Chinese growth, the provinces with the highest GDP in 2020 were Guangdong, Jiangsu, Shangdong, Zheijiang, and Henan, while those with the highest growth are Tibet, Guizhou, Yunnan, Anhui, and Hebei. The cities with the highest GDP according to data from the regional statistical institutes were Shanghai with 3.9 billion yuan, followed by Beijing, Shenzhen, Guangzhou, and Chongqing.
Guangdong province, where 115 million inhabitants reside, is one of the nation’s main manufacturing centers and recorded the highest regional GDP in 2020 with over 11 trillion yuan (1.7 trillion dollars). Guangdong’s GDP in 2020 exceeded that of South Korea (fourth largest economy in Asia) and came very close to the value of Italian gross product.
Air traffic and the new rich
As evidence of the volume of trade and investment, Guangzhou Baiyun International Airport was the busiest airport in the world in 2020, recording a total of 43.768 million passengers. it is the first time that a Chinese airport exceeds the passenger volume of Atlanta, a long-time airport with domestic and international traffic records.
If the country’s industry is based in the south, there is no shortage of wealthy entrepreneurs in the north. Beijing, in fact, according to the Forbes 2021 ranking is the city with the highest number of billionaires in the world, surpassing New York in the global ranking.
The pandemic has helped accelerate Chinese growth with a series of economic records testifying to its rise. The same International Monetary Fund, which today confirms this development, is waiting to overtake the United States, a moment in which it could move from Washington to Beijing, because according to its statute it must be based in the largest economy.