The International Monetary Fund (IMF) has revised China’s economic growth forecast for 2024 upward to 5%, reflecting optimism about the country’s robust economic recovery. This adjustment comes from the IMF’s latest update to its World Economic Outlook (WEO), surpassing the previous forecast of 4.6% issued in April.
The IMF attributes this positive revision to a significant rebound in private consumption and strong export performance in the first quarter of the year. “In China, resurgent domestic consumption propelled the positive upside in the first quarter, aided by what looked to be a temporary surge in exports belatedly reconnecting with last year’s rise in global demand,” the WEO update stated.
The global financial institution maintained its forecast for global growth in 2024 at 3.2%, highlighting that emerging market economies in Asia remain the primary engine driving the global economy forward. IMF Chief Economist Pierre-Olivier Gourinchas emphasized this point, stating, “Asia’s emerging market economies remain the main engine for the global economy. Growth in India and China is revised upwards and accounts for almost half of global growth.”
The updated forecast for China’s growth was initially announced in late May by the IMF’s First Deputy Managing Director, Gita Gopinath, during a news briefing in Beijing following the conclusion of the IMF’s 2024 Article IV Consultation for China.
Global activity and world trade have shown signs of firming up at the turn of the year, with trade spurred by strong exports from Asia, particularly in the technology sector. The IMF noted that this momentum is crucial for sustaining global economic stability amid various challenges faced by economies worldwide.
China’s upward revision signals confidence in the nation’s economic policies and its ability to foster growth despite external uncertainties. The rebound in domestic consumption and export activity suggests that China is poised to continue playing a vital role in supporting global economic recovery.
Reference(s):
cgtn.com
