China’s economic growth will boost the recovery of emerging economies – IMF

Height China According to a new global outlook report from International Monetary Fund (IMF), published on Tuesday.

According to the document, which supports the same projections as last January, gross domestic product (GDP) The Chinese will grow up 5.2% this year and will moderate until 4.5% in 2024.

The numbers are much higher than the 3% growth of the world’s second largest economy in 2022. In addition, inflation will remain low this year, around 2%, and could rise to 2.2% in 2024.

“Because China absorbs about a quarter of Asian exports and between 5 and 10% from other regions, the opening and growth of its economy is likely to create positive side effects“, the document explains.

Photo: Reuters

During a press conference to launch the report, IMF Research Department chief Daniel Lee clarified that these “spillovers”, however, will not be as pronounced as one might expect after such a strong recovery in the Asian giant.

According to Li, this is because growth is primarily responsible for restoration of domestic services and not much investment other than China’s medium-term growth outlook is slowing as the country catches up with other advanced economies.

In fact, improving living conditions and China’s economic progress will also help slow down medium term global growthas the country moves closer to other more developed regions.

In this sense, the IMF expects the world economy to grow in the face of 3% in the next five yearswhich is the lowest level since the 1990s.

The report also details that with the fact that the number of new Covid-19 infections in China appears to have dropped significantly, supply chain disruptions will be moderate.

However, Foundation Research Director Pierre-Olivier Gurinshas warned of a weakness in the real estate sector that could affect the rest of the Chinese economy.

India, another great mover

The other great engine of the developing world will be India, which will rise 5.9% in 2023 and 6.3% in 2024according to the IMF.

These figures, however, are slightly lower than those forecast by the agency in its previous January report, in which it estimated growth of 6.1% in 2023 and 6.8% in 2024.

Photo: Reuters

The Asian country is on its way to becoming most populous in the worldahead of even China, and last year its rapid economic recovery (India’s GDP grew by 6.8% in 2022) made it the fifth largest economy on the planet.

New Delhi, which is chairing the G20 this year, has expressed its desire to be the voice of developing countries.

(EFE)

Source: Aristegui Noticias

follow:
\