China commonly called the world second largest economy. This name seems appropriate even in unstable condition such as corona virus outbreak. Data from the National Bureau of Statistics showed China Gross Domestic Product (GDP) growth was faster than economist prediction at 6,1% and followed 4,9% growth in third quarter. GDP grew 2,3% in 2020, this data has make China become the only one major economy in the world has recovered since last year. Chinese GDP growth accelerated because the recovery in services, high value of export and strong industrial output. Many nations in the world has been struggling to contain covid-19 pandemic. Instead, some country confirmed new variant of corona virus. In the beginning of 2021, global corona virus broke 95 million while death rate has reached 2 million. Government in many country got pressure to quickly distribute vaccines while at the same time economic still suffering from pandemic.
China economic growth mostly contributedby industrial sector, the main component is human resources as competitive advantage. China has succesfully created inovation in technology, transportation, communication device and many more. Annual basis in 2020, economic growth in China is projected at 2,1% (year on year). China will become the first country which have positive economic growth in 2020.Economic recovery in China supported by strict rule and policies to handle virus outbreak and special funds for business sector.
Different with China, US economy shrank in 2020 but economist has been giving prediction to recover on the forth quarter. Economics project that growth will seen this year once the virus outbreak still remains a threat for global economy. How about Indonesia?
At the beginning of the year, IMF estimated economic growth will grow approximately 4,8 percent. Primarily economic growth predicted 6,1 percent but economist has been revised the target. Indonesia’s goverment fell optimistic on 5 percent for economic growth. Positive outlook in 2021 supported by rebound that occured in the second quartal in 2020. GDP is expected to grow 4,8 percent in 2021 and 6 percent in 2020. Those prediction will happen if strong policies including distribution of covid-19 vaccine implemented. Recovery macro poliicies and fiscal strategy should be applied to increase revenue to financing the impact from corona virus outbreak. Government need to embrace an economic change and create policies that allow capital, labor, skills and innovation to make stronger economic environment. In indonesia, both direct and indirect investment collapsed in 2020 and remains bleak for years to come. Government have challenge to stabilize availability of credit (some country have supported fund to some company) and maintain economic policies to prevent financial crisis. It’s not an easy duty.