BEIJING: The IMF forecasts China’s economy to grow by 5% this year after a “strong” first quarter. The upgraded forecast exceeds the earlier prediction of 4.6% expansion.
The IMF said it had revised up both its 2024 and 2025 GDP targets by 0.4 percentage points but warned that growth in China would slow to 3.3 per cent by 2029 due to an ageing population and slower expansion in productivity.
“China’s economic growth is projected to remain resilient at 5 per cent in 2024 and slow to 4.5 per cent in 2025,” the global lender said in a statement wrapping up its annual assessment of the world’s second-biggest economy for 2024. “Strong Q1 GDP data and recent policy measures” drove the upgrades, it added.
China’s economy grew at a faster-than-expected 5.3 per cent pace year-on-year in the first quarter, comfortably above analysts’ forecast for a 4.6 per cent gain in a Reuters poll and up from a 5.2 per cent expansion in the previous quarter.
A string of recent economic indicators for April including factory output, trade and consumer prices suggest the US$18.6 trillion economy has successfully navigated some near-term downside risks, but China observers say the jury is still out on whether the bounce is sustainable.
Following a robust first quarter, the International Monetary Fund (IMF) has revised upwards its GDP growth forecasts for China in 2024 and 2025.
The IMF’s upgraded forecasts underscore confidence in China’s GDP growth for 2024 and 2025. Despite challenges, sustained efforts are crucial for promoting inclusive growth. China’s focus on innovation, technology, and green development is pivotal for long-term prosperity.
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