IMF says China’s growth is slowing “remarkably”

China has an important role to play in the recovery of the global economy from the Covid-19, but its growth is slowing “remarkably,” the International Monetary Fund (IMF).

The managing director of the IMF, Kristalina Georgieva, held a virtual meeting with the Chinese prime minister, Li Keqiang, and discussed issues ranging from inflation to recovery from the pandemic, according to a statement from the Fund.

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

“Given the China is a vital engine for global growth, taking strong action to support high-quality growth will help not only Chinabut to the world, “he added.

In October, IMF it 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 the highest growth rate in Beijing since 2011, analysts warn that China It 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 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 commercial disputes between Washington and Beijing, the managing director of the IMF He 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 group G20 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 Initiative Debt Service Suspension (DSSI) The G20 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.



Reference-www.eleconomista.com.mx

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