Reopening of China: A good opportunity for Pakistan, other countries
ISLAMABAD: China has finally lifted pandemic restrictions and resumed mobility last month. This will result in a pickup of economic activity and provide momentum to the international economy.
Last year, China faced its most significant economic setback as the COVID-19 outbreak led to several lockdowns and a decline in economic growth.
The Finance Division reported this in its Monthly Economic Update and Outlook for February 2023, released on Feb 28.
However, the recent reversal of policy and reopening ignited the optimistic expectations that the economy will return to its footing this spring. It is projected that the Chinese economy will grow by 5.2 percent this year, compared to 3 percent in the previous year.
Evidence suggests that if the Chinese economy grows by 1 percentage point, the economic growth in other countries rises by around 0.3 percentage points.
The factories in China produce a significant portion of the world’s manufacturing output, surpassing the US, Germany, and Japan combined.
This highlights that the implementation of appropriate policies in China would not only boost the Chinese economy but would also be beneficial for other countries of the world. International financial institutions predict that China will account for one-third of international growth during the current year.
The largest beneficiaries from China’s rebounding will possibly be the oil exporters and its Asian neighboring countries, according to Goldman Sachs.
As China’s yearly food imports reached approximately USD 266 billion and are expected to increase over the years, Pakistan can benefit from the significant and enhanced consumption patterns of the food sector within the Chinese economy.
Pakistan is home to the Chinese flagship initiative, i.e., CPEC. This initiative slowed down during the previous government, and it is high time to revive the program to put Pakistan on the trajectory of sustainable development by connecting Pakistan to 150 markets worldwide through the BRI.