courtesy: CNN
China’s economy is set to grown 5% this year, after a “strong” first quarter, said the International Monetary Fund on Wednesday, updating its earlier forecast of 4.6% growth. However, it expects the growth to be slowed down in the years ahead.
The global lender’s new projections comes as Beijing steps up efforts to shore up an uneven recovery in the world’s second biggest economy, which has stumbled in the face of a protracted property crisis and its ripple effects across investors, consumers, and businesses.
The IMF said that despite of it revising its 2024 and 2025 GDP targets by 0.4%, the country’s growth will fall to 3.3% by 2029, which will be mainly due to ageing population and slower expansion in productivity.
The international body expects China’s economy to grow 5% this year and would slow down to 4.5% in 2025.
“The upgrade that we have for this year mainly reflects the fact that first quarter GDP growth came in stronger than expected, and there were some additional policy measures that were recently announced,” stated Gita Gopinath, IMF’s First Deputy Managing Director, in Beijing.
