IMF raises China’s growth forecasts
The International Monetary Fund (IMF) increased its economic growth forecasts for China, driven by strong first quarter data and recently implemented policies.
The International Monetary Fund (IMF) on Wednesday raised its forecast for China’s growth this year 2024 to 5 percent from the previous 4.6 percent due to “strong” first-quarter figures and recent policy measures.
The upgrade follows the IMF’s visit to China for regular assessments. The organization increased its 2025 growth forecast, previously announced as 4.1 percent, to 4.5 percent.
But by 2029, they predict China’s growth will slow to 3.3 percent due to an aging population and slowing productivity growth. This is below the IMF’s previous forecast of 3.5 percent growth in the medium term.
China’s economy grew by a better-than-expected 5.3 percent in the first quarter, supported by strong exports. Data for April showed consumer spending remained weak but industrial activity was picking up.
About two weeks ago, Chinese authorities announced sweeping measures to support the struggling real estate sector, including removing the floor on mortgage interest rates.