IMF says China growth slowing after strong Q1 reopening

IMF says China growth slowing after strong Q1 reopening
FILE PHOTO: A participant stands near a logo of IMF at the International Monetary Fund – World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018. REUTERS/Johannes P. Christo/File Photo

WASHINGTON: China’s economy is slowing due to weaker private investment, slowing exports and reduced domestic demand after a strong performance in the first quarter as the economy reopened from COVID-19 lockdowns, the International Monetary Fund said on Thursday (Jul 13).

“So the overall picture for growth in China is one of a slowing economy and that is consistent with the forecast that we had in April,” IMF spokesperson Julie Kozack told a regular news briefing, adding that the Fund was observing “subdued” inflation in China.

Kozack said the IMF would revise its China growth forecast as part of a Jul 25 update of its World Economic Outlook, but did not indicate whether it would be lower.

The Fund in April had forecast China’s 2023 real GDP growth at 5.2 per cent, up from a COVID-subdued 3.0 per cent in 2022. China’s reopening had been one of the few bright spots in the IMF’s subdued April forecasts, with many major economies slowing as tighter monetary policy saps demand.

Kozack said the IMF was observing “subdued inflation” in China due to weaker demand and slack in the economy.

Source: Reuters