Today, the International Monetary Fund raised its forecast for economic growth in China this year to 5% instead of 4.6%, due to the strong economic performance in the first quarter of this year, in addition to the measures implemented by the Chinese authorities.
The Fund expected that economic growth in China would remain steadfast at 5% this year, before slowing to 4.5% next year, noting that these numbers represent an upward revision of 0.4 percentage points for the two years, compared to the expectations of the World Economic Outlook report for the month of April.
Inflation is expected to rise, but will remain low, with output remaining below the potential level, while core inflation will gradually increase to an average of 1% this year.
In the medium term, growth is expected to slow to 3.3% by 2029 due to an aging population and slower productivity growth.
The IMF team visited China from May 16 to 28 to hold discussions with senior officials from the Chinese government, the People’s Bank of China, private sector representatives, and academics to exchange views on economic prospects, risks, and challenges.
