IMF chief Georgieva flags possible downgrade in China's GDP forecast

WASHINGTON - The

ongoing Covid-19 pandemic

and problems in China’s real estate sector pose continued risks to China’s economy, the head of the International Monetary Fund said on Tuesday, adding that the fund may have to revise its growth projection downwards.

Speaking in Berlin, IMF managing director Kristalina Georgieva told reporters that the IMF had forecast 3.2 per cent growth in China’s economy in 2022, improving to 4.4 per cent in 2023, but the risks were on the “downside,” and a downgrade was possible.

China did have fiscal space to boost its economy and counter the downward pressure, she said, adding that Beijing was also looking at shifting away from its zero-Covid policy and moving towards a more targeted response, which could help reduce supply chain interruptions and counteract slowing growth. AFP