Answer to Question #176436 in Macroeconomics for Mayuri

Question

What is the estimated 2022 GDP Loss (in percentage) in comparison to pre-covid levels

(January 2020 forecast) in China and Other Emerging Economies in Asia other than

China?

Answer 1

$$Solution$$

The global economy shrank by $4.3\%$ in $2020$, which is a $0.9\%$ smaller collapse than it was anticipated. The output in China is estimated to have rebounded in $2020$ much faster than expected. China is an exception but in the emerging economies the pandemic disruptions were severe and resulted into deep recessions.

Due to the economy collapse last year, due to the pandemic, global economic output is likely to expand to $4\%$ but still remain more than $5\%$. The GDP in $2022$ is projected to moderate to $3.8\%$ , this is being weighted down by the pandemic's lasting damage to potential growth in the other Emerging Economies.

Ref.

World Economic Outlook, $2021$