IMF Says China’s GDP To Decline By 1.6%: IMF downgrades growth forecasts for China

A big statement was recently made by the International Monetary Fund. The IMF recently stated that China’s GDP is expected to decline in the coming years. Reportedly, the International Monetary Fund downgraded the forecast for China’s growth for 2023 and 2024. The IMF stated that China’s recovery was losing steam and weakness in its property sector. Since the International Monetary Fund stated that China’s GDP will decline in the coming years, it is speculated that the property slowdown of China would weigh on the growth of Asian countries. In the following section, we have discussed it in more detail. Stick with this page and swipe down the page.

IMF

Although China is the second largest economy in the world, it is predicted that the economy of China will increase at least by 5 percent in the current financial year and 4.2 percent next year. The growth forecast of China by the IMF for April month, that the GDP of China would go down from 5.2 percent to 4.5 percent, the International Monetary Fund cited in an economic outlook report published on Wednesday, October 18, 2023. Shift to the next section and read more details.

The institution said, “In China, the recovery is losing steam, with manufacturing purchasing managers’ indexes entering contracting territory from April to August and conditions in the real estate sector weakening further,” Its report projected that a long property market correction in China would in the near-term trigger greater financial stress among developers and larger asset quality deterioration. It can also cause China’s GDP (Gross Domestic Product) to slip significantly by 1.6 percent by 2025. Relative to the baseline by 2025, the World Gross Domestic Product would drop by 0.6 percent. The 2023 outlook for Asia and the Pacific by the IMF was brighter as the institution called it the most dynamic country this year. Continue reading this article for more details.

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While the International Monetary Fund earlier projected China’s growth at 4.6 percent in 2023. It asserted that China was all set to contribute around 2/3 of global growth this year. However, Asia and Pacific’s growth is likely to slow down next year to 4.2 percent. It further added that it expects moderate to 3.9 percent in the medium term which would be the all-time low in the past twenty years as China’s property slowdown and productivity growth weigh on other economies in Asia. Disinflation was a bright spot for Asia with the region expected to return to respective central bank inflation targets by the end of 2024.

Amzad Khan
Amzad Khan

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