IMF raises China's 2023, 2024 GDP growth forecasts. Details here
country's growth forecast to 5% and 4.2% in 2023 and 2024 respectively. In an official statement, the IMF said that GDP growth could slow to 4.6% in 2024 because of continued weakness in China's property sector and subdued external demand, Reuters reported.
The upward revision followed a decision by China to approve a 1 trillion yuan ($137 billion) sovereign bond issue and allow local governments to frontload part of their 2024 bond quotas, in a move to support the economy. IMF's First Deputy Managing Director Gita Gopinath stated that these projections reflect upward revisions of 0.4 percentage points in both 2023 and 2024 relative to October WEO projections due to a stronger-than-expected third-quarter outturn and recent policy announcements.
China has introduced numerous measures to support the property market, but more is needed to secure a quicker recovery and lower economic costs during the transition, she said as quoted by Reuters. Gopinath said that a comprehensive policy package should include measures to accelerate the exit of nonviable property developers, remove impediments to housing price adjustment, allocate additional central government funding for housing completion, and assist viable developers to repair balance sheets and adapt to a smaller property market.
On October 30, the IMF released its economic projections, stating that global growth is expected to remain at 3 percent in 2023 and further decline to 2.9 percent in 2024. This marked one of the lowest growth rates in decades.
According to the IMF's "Navigating Global Divergences" report for October 2023, substantial economic recovery on a global scale faces significant challenges. The baseline forecast indicates a slowdown in global growth from
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