Home News Global Economy

IMF may cut its China growth forecast, chief says

Bloomberg11/30/2022 09:40 AM GMT+08  • 2 min read
IMF may cut its China growth forecast, chief says
Photo: Bloomberg
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

The International Monetary Fund may have to trim its forecast for China’s economic growth as Covid-19 related restrictions and difficulties in the property sector weigh on prospects.

The Washington-based crisis lender sees Chinese gross domestic product expanding 3.2% this year and 4.4% in 2023.

“Risks are on the downside,” IMF Managing Director Kristalina Georgieva told reporters in Berlin Tuesday. “There is indeed the possibility that in this time of very high uncertainty, we might have to revise these projections down.”

Frustration with China’s Covid Zero policy is coming to a head, as lockdowns, testing and other restrictions spur historic protests across the country. Property developers have defaulted on a record amount of dollar bonds this year, but the nation’s mega state-owned banks are offering at least 270 billion yuan ($37 billion) in new credit to property developers as part of the country’s push to ease turmoil in the real estate market.

“China does have fiscal space to boost its economy and counter any pressure for the growth to go down,” Georgieva said. “We have been supportive in looking into what China can do. A policy more effective for China itself and for its role in the world economy.”

Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.