The IMF currently forecasts China will grow by 8.4% in 2021
China’s economic growth rate was raised this year by the International Monetary Fund (IMF). This is because organizations have said the route from the economic crisis caused by the pandemic is “increasingly noticeable.”
The Washington, D.C.-based IMF increased its forecast for China’s economic growth in 2021 to 8.4%, 0.3% higher than forecast at the beginning of the year.
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China’s economy has risen 2.3% despite the coronavirus pandemic in 2020, but the government has set its own target of 6%.
New optimism around China appears to be a response to the expected global recovery.
“There are more exports as global growth is strong. Gita Gopinath, IMF Chief Economist and Research Director, said:
But Gopinas also said China’s growth was disproportionate and government spending was somewhat dependent.
“It still relies heavily on public investment, and private consumption is not recovering as quickly as we hoped.”
She added that “we hope is to work towards supporting recovery from the private sector, as opposed to the public sector.”
The IMF increased its overall global 2021 growth estimate by 0.5%-6%, while its forecast for 2022 was up 4.4% from 0.2%.
