IMF: China to contribute a third to global growth in 2023

By Al Mayadeen English
Source: Agencies
26 Mar 2023 15:45
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China's recovery provides a welcome boost to the global economy, the director of the International Monetary Fund says.

A staff member displays a 100-yuan RMB banknote at the Bank of China Tower in Hong Kong. (AP)

The Director of the International Monetary Fund, Kristalina Georgieva, expressed optimism about China's prospect, which is expected to contribute significantly to global economic development, making up approximately one-third of it in 2023.

The "strong rebound" in the Chinese economy, according to Georgieva, is significant for the entire world.

Georgieva emphasized that China's recovery provides a welcome boost to the global economy, noting that, according to an IMF study, an increase in China's GDP growth of one percentage point results in average growth of three percentage points in other Asian nations.

According to China's social and economic development plan, the country's GDP is anticipated to reach 5% this year. Some academics, though, are more optimistic about China's economic development. The country's GDP could grow by 6% in 2023, according to Chen Fengying, the former head of the Institute of World Economic Studies at the China Institute of Contemporary International Relations.

Due to numerous COVID-19 breakouts and a volatile international environment, China's GDP growth rate in 2022 was 3% year over year. The GDP of the nation was 121.02 trillion yuan ($17.95 trillion) in 2022.

It was earlier reported that China's trade surplus increased by 30% last year, reaching an all-time high of $877.6 billion. Meanwhile, Russia moved up to second position in terms of trade surplus among big economies after increasing its surplus by 1.7 times over the course of the year to a record $333.4 billion, as per Sputnik calculations based on data from national statistics.