Friday, January 21

The IMF warned of the “notable” slowdown in China’s economy

“China achieved a truly remarkable recovery, but its growth momentum has slowed markedly,” Georgieva said.

“Since China is a vital engine for global growth, taking firm action to support high-quality growth will help not only China, but the world,” he added.

In October, the IMF lowered its forecasts for China’s growth due to an accelerated decline in public spending, forecasting an expansion of 8% this year and growth of 5.6% in 2022.

While the 2021 figure is Beijing’s highest growth rate since 2011, Analysts warn that China faces a weakness in its real estate sector, as well as a rise in coal prices and a shortage of components.

Georgieva added that Beijing made “important contributions” to expanding access to vaccines in order to meet the goal of inoculating 40% of the world’s population against COVID-19 by the end of the year, and 70% by the middle of next year. .

Given the continuation of trade disputes between Washington and Beijing, the IMF managing director also called for “cooperation to reduce trade tensions and strengthen the multilateral trading system,” considering it “an essential engine of growth and employment.”

The IMF is pressuring the G20 group of the world’s richest countries, including China, to expand and improve its debt relief initiative, warning last week that many countries face a serious crisis without this help.

The G20 Debt Service Suspension Initiative (DSSI) expires at the end of the year, and Georgieva welcomed the “continued engagement with China” in the group’s common framework, which continues some of the relief.