IMF raises growth forecast for China

The International Monetary Fund (IMF) raised its growth forecast for the Chinese economy to 5.4 percent this year and 4.6 percent next year.

The IMF statement shares the main findings of the audit within the framework of the Article 4 consultation on the Chinese economy.

In the statement, it was noted that China exhibited a strong recovery after Covid-19 and said: “The Chinese economy is estimated to grow by 5.4 percent in 2023.” The expression was used.

The statement noted that growth is expected to slow to 4.6 percent in 2024 due to continued weakness in the property market and declining foreign demand.

To raise near-term expectations in China, it was stated that a strategy was needed to control risks arising from current real estate regulations and manage local government debt, and that supportive macroeconomic policies should complement these efforts.

Broad-based pro-market structural reforms aimed at improving efficiency and supporting decarbonization could support growth, the statement said.

THE RESULTS WERE STRONGER THAN EXPECTED AND EFFECTIVE

The statement said the latest economic growth forecasts were made due to better-than-expected third-quarter results and recent policy statements, and noted that Chinese growth included upward revisions of 0.4 percentage points for both in 2023 and 2024, according to the October World Economic Outlook forecasts.

“In the medium term, growth is projected to gradually decline to around 3.5 percent by 2028 due to headwinds from weak productivity and an aging population,” the statement said. The expression was used.

In the IMF’s previous World Economic Outlook forecast, China was predicted to grow by 5 percent in 2023 and 4.2 percent in 2024. (BRITISH AUTO CLUB)