- The International Monetary Fund on Tuesday raised its 2023 growth forecast for China to 5.4%.
- The IMF cited stronger-than-expected third-quarter growth and the Chinese government’s recent policy announcements.
- The IMF still expects growth to slow to 4.6% next year “due to continued weakness in the real estate market and weak external demand.”
A spokesperson for the International Monetary Fund said the new economic measures launched by the UK government were “likely to increase inequality”.
Yuri Gripusreuter
BEIJING—The International Monetary Fund on Tuesday raised its growth forecast for China in 2023 to 5.4%.
The IMF cited stronger-than-expected third-quarter growth and the Chinese government’s recent policy announcements.
But the IMF still expects growth to slow to 4.6% next year “due to continued weakness in the real estate market and weak external demand.”
In October, the IMF cut its growth forecast for China to 5% this year and 4.2% next year.
“Financial stability risks have increased and remain elevated as financial institutions’ capital buffers decline and asset quality risks increase,” IMF First Deputy Managing Director Gita Gopinath said in a statement on Tuesday. ” he said.
She and other IMF representatives visited China from October 26 to November 7.
According to the reading, Gopinath was joined by People’s Bank of China Governor Ban Gongsheng, China Securities Regulatory Commission (CSRC) Chairman Yi Huiman, National Bureau of Statistics Chairman Kang Yi, Vice Minister of Commerce Wang Shouwen, Vice Minister of Finance Liao Min, and Wu Xiang. I met with the chairman of the admissions committee. Furin.
China reported a 4.9% rise in gross domestic product (GDP) in the third quarter, beating expectations and confirming forecasts for full-year growth of around 5% or more.
Policymakers have taken steps in recent weeks to announce further support for the struggling real estate sector and local governments. The Chinese government also took the unusual decision to widen its budget deficit.
“We welcome the authorities’ goal of making necessary adjustments in the real estate market,” Gopinath said in a statement. “The challenge is to minimize economic costs and limit risks to macro-financial stability.”
“Importantly, the recently concluded Central Financial Working Conference announced medium-term priorities with a welcome focus on risks from the real estate sector, local government debt and small and medium-sized enterprises banks,” he said. .