IMF further lowered China’s growth forecast for 2022 and 2023

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The International Monetary Fund (IMF) further lowered its growth forecast for China’s economy in 2022 to 3.2% from its earlier estimate of 3.3%, saying the country’s slowdown, the Ukraine war and inflation triggered by aggressive US monetary tightening are the three main headwinds facing the global economy. According to its latest World Economic Outlook, the Washington-based institution also cut China’s forecast for next year from 4.6 per cent to 4.4 per cent.
China’s economic outlook is dimming due to a number of factors, including Beijing’s inflexible “zero-Covid policy”, a property sector downturn and a volatile geopolitical situation. That will impact the rest of the world, according to the IMF, given China accounts for one-fifth of the global economy and is integral to supply chains. As China is not expected to change its “Zero COVID policy” even after the 20th Congress of the ruling Communist Party beginning on October 16 in Beijing, this challenge is likely to continue.
Some 43 per cent of the world will experience at least two consecutive quarters of negative growth next year, the IMF said, while revising down the 2023 global growth forecast by 0.2 percentage points to 4.4 per cent. It kept this year’s estimate unchanged at 3.2 per cent.
AP

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