Friday 11 December 2020

China, India will lead global economic recovery

KUALA LUMPUR, Dec 10 -- Global real GDP growth will reach 5.1 per cent next year, with developing and advanced economies at 6.1 per cent and 3.8 per cent, respectively, according to global market research company Euromonitor International.

Euromonitor’s Global Recovery Tracker findings suggest that amongst the top 10 largest economies, China and India will recover the fastest, with the UK and Brazil taking the longest, according to a statement.

India is leading the world’s economic recovery with a GDP growth set to reach nine per cent next year, a strong performance led by a 12.5 per cent forecast increase in private consumption during the festive season at year-end.

In second place, China’s GDP growth is forecast at 7.5 per cent for 2021. 

Meanwhile, in the UK, the situation between COVID-19 and Brexit causes uncertainty about the future and gives an additional shock to the economy.

Euromonitor International economist, Giedrius Stalenis says: “Unsuccessful Brexit negotiations would stagnate economic growth for the UK. However, if companies prepare better for a No-Deal Brexit, the UK economy could grow around four per cent by 2021.”

In Brazil, while the energy and transportation sectors are still underperforming, the manufacturing and production sectors are showing signs of partial economic recovery, forecasting a 3.2 per cent GDP growth in 2021, one of the lowest in the world.

-- BERNAMA

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