(Yicai Global) Jan. 6 -- China’s gross domestic product is expected to increase 7.9 percent this year, upstaging the 4 percent expansion projected for the global economy, according to a new forecast from the World Bank.

In advanced economies, the rebound stalled in the third quarter following a resurgence of infections, pointing to a slow and challenging recovery, the Washington-based financial institution said in its Global Economic Prospects report published yesterday.

“Although global economic activity is growing again, it is not likely to return to business as usual for the foreseeable future,” the report said. “The pandemic has caused a severe loss of life, is tipping millions into extreme poverty, and is expected to inflict lasting scars that push activity and income well below their pre-pandemic trend for a prolonged period.”

The bank’s forecast for global economic growth assumes widespread use of Covid-19 vaccines. “Limiting the spread of the virus, providing relief for vulnerable populations, and overcoming vaccine-related challenges are key immediate priorities,” it said.

A downside scenario in which contagions continue to rise and the rollout of a vaccine sputters may box in global growth at 1.6 percent this year, per the report.

US GDP is seen expanding 3.5 percent following an estimated 3.6 percent retreat in 2020, the report said.

Aggregate GDP in emerging markets and developing economies, including China, is expected to grow 5 percent after a contraction of 2.6 percent last year. China aside, they are forecast to gain 3.4 percent after last year’s minus 5 percent.

Editor: Ben Armour, Xiao Yi