China’s Economic Outlook: IMF Forecasts 5.2% Expansion in 2023
The International Monetary Fund (IMF) has projected that China’s economy will grow by 5.2% in 2023 and 4.5% in 2024. According to the IMF, the reopening and growth of China’s economy is expected to generate positive spillovers, particularly for countries with stronger trade links and reliance on Chinese tourism. The growth of China’s economy is seen as a key contributor to global growth in the coming year, as it is one of the few economies seeing a rapid reopening with a strong rebound.
The IMF has estimated that the world economy will grow 2.8% in 2023, 0.1 percentage point lower than its previous forecast in January. The growth of advanced economies will decline by half in 2023 to 1.3%, before rising to 1.4% in 2024. About 90% of advanced economies are projected to see a decline in growth in 2023, resulting in higher unemployment. China and India are the exceptions to the global slowdown, and they are expected to account for half of global growth in 2023.
The IMF’s forecast is based on the assumption that the Covid-19 pandemic will be under control, and that the global economy will continue to recover from the various shocks experienced in 2022. The IMF has warned that the return of the global economy to its pre-pandemic growth rate is becoming increasingly elusive.
The IMF’s Managing Director, Kristalina Georgieva, has urged countries to take measures to accelerate the global recovery, including investing in education, healthcare, and green infrastructure. The IMF has also called for countries to provide support for vulnerable people and businesses, particularly in developing countries, to ensure that the recovery is inclusive and sustainable.
In summary, the IMF has projected that China’s economy will grow by 5.2% in 2023, which is expected to be a key contributor to global growth. However, the global economy is still facing challenges, and the IMF has called for countries to take measures to accelerate the recovery and ensure that it is inclusive and sustainable.