CHINA - Economy Bouncing Back

Arno Froese

Across China, restaurants and gyms are busy again. Subway cars and airport departure lounges are packed. Children are preparing to return to classrooms with few of the restrictions U.S. officials say will be hallmarks of post-coronavirus life. In some schools, children are being asked to bring masks—but they don’t have to wear them.

With the coronavirus smothered for now, thanks to draconian control measures, J.P. Morgan recently boosted its 2020 China growth forecast to 2.5% from 1.3% in April. Economists at the World Bank and elsewhere have also upgraded their forecasts for China, the only major economy expected to grow this year.

It is also buttressing Beijing’s belief that China’s state-led model, which helped the country navigate the 2008-09 financial crisis with minimal pain, is better than the U.S.’s market system, emboldening Chinese leaders at a time of rising geopolitical competition with the U.S.

“China will emerge even stronger as the largest economy in the developing world,” said Homi Kharas, a senior global economics and development fellow at the Brookings Institution. He added that China will likely come out of the pandemic even more firmly entrenched as Japan—the world’s No. 3 economy, which the International Monetary Fund expects to shrink by 5.8% this year—falls further behind.

Even in Wuhan, the pandemic’s original epicenter, life is returning to normal, with many residents no longer wearing masks in streets and restaurants filling up again. Images of a DJ hosting a water-park rave party with hundreds of people packed together garnered global attention.

China’s economic gains are easily explained, said Mr. Lardy of the Peterson Institute: “They did a much more effective job of bringing the coronavirus under control.”

China’s factories were among the world’s first to reopen in April, which helped China grab market share in global trade.

Before the coronavirus, Deutsche Bank estimated China’s economy would grow by roughly 26% between 2019 and 2023, versus 8.5% for the U.S. over the same period.

Now, taking into account the impact of the pandemic, the bank expects China’s economic expansion to moderate slightly to 24% between 2019 and 2023, while the U.S. over that stretch will have grown by 3.9%—less than half the original projection., 24 August 2020

Arno's commentary

Virtually all business experts the world over see communist China as the future leader of the global economy. While the Europeans and the US are alarmed at the potential danger to their own economies, the world at large is leaning more and more toward China. Very few countries can afford to ignore their economic power.

When it comes to global influence, we note that China’s contribution is listed at 0.36% of their GDP; the USA 0.15%. The world’s most generous country is Sweden, with 1.36% earmarked for foreign aid.

How does this relate to prophecy? We may answer with one word: equality. Where once poverty dominated communist China, it has grown to become one of the most dynamic world leaders. Quite naturally, this will contribute to the rise of Asian as well as African economies. In the end, a global economic system will be established, opening the door for merchandising throughout the world. This in turn will create peace, security, and prosperity as never before in history. That goal will be reached, but it will eventually collapse. That’s the word of prophecy.

Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.

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