China to contribute more than one-fifth of increase in global GDP: Report
The IMF report predicted that the US will be the second biggest contributor to global growth, followed by India, Japan and Germany.
China will drive global economic growth in the post-pandemic years, Bloomberg said in a report citing an International Monetary Fund (IMF) report.
China’s contribution will be more than one-fifth of the total increase in the world’s gross domestic product in the five years through 2026, according to Bloomberg calculations based on IMF forecasts published on April 6.
According to IMF’s World Economic Outlook report, the global economy is expected to expand 6 percent this year and will slow towards 3 percent pace by 2026. It further warned of uneven spread of growth.
“Income inequality is likely to increase significantly because of the pandemic,” the Fund said in the report. “Close to 95 million more people are estimated to have fallen below the threshold of extreme poverty in 2020 compared with pre-pandemic projections.”
The report further predicted that the US will be the second biggest contributor to global growth, followed by India, Japan and Germany.
Global GDP is expected to rise by more than $ 28 trillion to $ 122 trillion over that period, after falling $ 2.8 trillion last year in the biggest slowdown since the great depression.