The head of the International Monetary Fund (IMF) concluded her visit to China with positive remarks about the “productive and substantive” discussions held with Chinese officials. This comes as the IMF expressed concerns in July about the global economic recovery slowing down, despite a slight improvement in its outlook for global growth this year.
Regarding China, the world’s second-largest economy, the IMF has projected a 5.2% expansion in 2023, which is slightly higher than China’s own target of approximately 5%. However, China’s economic growth has faced challenges recently due to factors such as weak consumer demand, elevated youth unemployment, and a crisis in the critical property sector. These issues have further dampened the already modest post-pandemic recovery in the country
During her visit, IMF Chief Kristalina Georgieva discussed various topics, including the state of the global economy and specific developments within China. Georgieva also had meetings with the Mayor of Shanghai and Dilma Rousseff, the former President of Brazil who now leads the New Development Bank, an institution established by the BRICS emerging economies.
“We talked about measures the Chinese government is taking to bring forward the (growth) goal,” the Bulgarian economist said, adding that the target was “important for China (and) important for the world”.
“In a world where so many countries are vulnerable to the impact of the Covid and war shocks, it is critical that the IMF has the financial strength to help them,” she said.
“I am grateful to China for recognising the role of the IMF at the centre of the global financial safety net,” she said.
It’s worth noting that back in March, Georgieva had encouraged Chinese policymakers to focus on increasing productivity and shifting the economy away from heavy investment toward more sustainable growth driven by consumption.