China has an important role to play in the global economy as it recovers from COVID-19, but its growth is slowing, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said Monday.
“China has achieved a truly remarkable recovery, but its growth momentum has slowed considerably,” the IMF official said in a statement after a virtual meeting with Chinese Prime Minister Li Keqiang. “With China being a vital engine of global growth, taking decisive action to support high-quality growth will not only help China, but the world as well,” Mr.me Georgieva.
In October, the IMF lowered its growth forecast for China due to an accelerated decline in government spending. It is now forecasting an 8% expansion this year and 5.6% in 2022. Although Beijing’s 2021 growth forecast is the highest for Beijing since 2011, analysts are serving this warning: the country must contend with its weak economy. real estate sector, soaring coal prices and component shortages.
Mme Georgieva added that Beijing has made “significant contributions” to expanding access to vaccines so that it can meet the goal of vaccinating 40% of the world’s population against COVID-19 by the end of this year. and 70% by the middle of next year.
The boss of the IMF also called for “cooperation to reduce trade tensions and strengthen the multilateral trading system, which is an essential engine of growth and employment”, in a climate of trade disputes that continue between Washington and Beijing.
The IMF is pushing G20 countries, including China, to expand and improve their debt relief initiative. The organization said last week that without help, many countries would experience a severe crisis.
The Debt Service Suspension Initiative, created by the group, expires at the end of the year. Mme Georgieva however welcomed “the continuation of the engagement with China” on the common framework of the G20, which prolongs part of the reliefs.