China's recovery demand to boost global growth

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, a recent Goldman Sachs report said.

Such a growth boost from China is expected to extend into 2024, albeit by a smaller margin, the report said, 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.

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.