China’s economy is forecast to expand by 8.1% in 2021 and 5.4% in 2022

China’s economy is forecast to expand by 8.1% in 2021 and 5.4% in 2022, compared with 2.3% last year, the World Bank has said. 

''East Asia and Pacific region economies are forecast to grow 7.4% in 2021 and 5.4% in 2022, up from 1.2% last year.''

Reuters reports that ''the World Bank said 'successful vaccination campaigns and early control of the pandemic, together with significant policy reform and the diffusion of new technologies' could lead to better-the-expected growth. Slow suppression of COVID-19, however, could lead to worse-than-anticipated economic activity, increasing the risk of the emergence of new variants that could be more infectious, lethal and resistant to existing vaccines.''

Market implications

Commodities and proxy currencies such as AUD stand to benefit from such growth.