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IMF May Lower China’s Growth Forecast Amid Covid Curbs: Chief

According to the Washington-based crisis lender, IMF, China's GDP will grow 3.2 per cent this year and 4.4 per cent in 2023

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The International Monetary Fund may have to lower its forecast for China's economic growth due to Covid-19-related restrictions and difficulties in the property sector. 

According to the IMF, China's GDP will grow by 3.2 per cent this year and 4.4 per cent in 2023.

“Risks are on the downside, it is possible that in this period of extreme uncertainty, we will have to revise these projections downward,” said IMF Managing Director Kristalina Georgieva in Berlin on Tuesday.

Frustration with China's zero-Covid policy is reaching a boiling point, with lockdowns, testing and other restrictions sparking historic protests across the country.

Property developers have defaulted on a record number of dollar bonds this year. Still, the country's mega state-owned banks are offering at least USD 37 billion in new credit to property developers as part of the country’s push to ease market turmoil.

Georgieva said, “China does have fiscal space to boost its economy and counter any downward pressure on growth, we have been supportive in investigating what China is capable of and having a more effective policy for China and its role in the global economy.”

In recent days, Chinese people have been protesting against the zero-Covid-19 policy in China. Resentment of people against the government's strict restrictions has been simmering for some time, the public's patience was tested when a deadly fire broke out in Urumqi. It is widely assumed that the rescue response was hampered by lockdown restrictions.

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china international monetary fund