IMF raises economic forecast for China

The International Monetary Fund (IMF) has raised its economic growth forecast for Mainland China in 2021 to 8.4 percent, up from 8.1 percent in January.

The IMF said that China’s rebound has been attributed to “effective containment measures, a forceful public investment response, and central bank liquidity support have facilitated a strong recovery, and others.”

China had already returned to pre-covid GDP in 2020, ahead of most other countries that aren’t expected to do the same until 2023. Though tensions between Beijing and Washington could weigh on growth, said the IMF. 

“Tensions between the United States and China remain elevated on numerous fronts, including international trade, intellectual property, and cybersecurity. Domestic economic disparities arising from the pandemic downturn may also prompt new trade barriers, motivated by the need to protect domestic workers. Amid already-high levels of trade restrictions, such actions would add to inefficiencies and weigh on the recovery.”

Global economy on firmer ground, but with divergent recoveries amid high uncertainty (IMF)