- The International Monetary Fund on Tuesday raised its growth forecast for China to 5.4% in 2023.
- The IMF cited better-than-expected growth in the third quarter and recent policy announcements from Beijing.
- The IMF still expects growth to slow to 4.6% next year “given continued housing market weakness and subdued external demand.”
The UK government’s new economic measures are “likely to increase inequality”, according to a spokesman for the International Monetary Fund.
Yuri Gripas | Portal
BEIJING – The International Monetary Fund on Tuesday raised its growth forecast for China to 5.4% in 2023.
The IMF cited better-than-expected growth in the third quarter and recent policy announcements from Beijing.
However, the IMF still expects growth to slow to 4.6% next year “given ongoing housing market weakness and subdued external demand.”
In October, the IMF cut its growth forecast for China to 5% this year and 4.2% next year.
“Risks to financial stability are elevated and continue to grow as financial institutions’ capital buffers are reduced and risks to asset quality increase,” IMF First Deputy Managing Director Gita Gopinath said in a statement on Tuesday.
She and other IMF officials visited China from October 26 to November 7.
According to a report, Gopinath met People’s Bank of China Governor Pan Gongsheng, China Securities Regulatory Commission (CSRC) Chairman Yi Huiman, National Bureau of Statistics Commissioner Kang Yi, Vice Commerce Minister Wang Shouwen, the Vice Finance Minister Liao Min and EXIM Chairman Wu Fulin.
China reported gross domestic product grew 4.9% in the third quarter, beating expectations and confirming forecasts for full-year growth of about 5% or more.
Policymakers have nevertheless taken steps in recent weeks to announce further support for the struggling real estate sector and local governments. Beijing also made the rare decision to increase the budget deficit.
“The authorities’ aim to bring about necessary adjustments in the real estate market is welcome,” Gopinath said in the statement. “The challenge is to minimize economic costs and contain 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 banks,” she said.