People choose products in a duty-free shop in Haikou, South China's Hainan province on Jan 26, 2023. (PHOTO / VCG)
The full recovery of China's domestic demand from COVID-19 is estimated to raise global GDP by around 1 percent through the end of this year, according to a recent Goldman Sachs report.
Such a growth boost from China is expected to extend into 2024, albeit by a smaller margin, the report showed, adding that each 1 percent increase in China's GDP is estimated to raise broader global growth by 0.2 percent.
Increased domestic demand in China should drive exports in goods of other economies, while a recovery in demand for foreign services — particularly for international travel — should provide a modest boost to global growth as well, according to the report.
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Higher oil demand will benefit oil exporters, though higher oil prices will likely weigh on the real income and growth of other economies, the report added.