IMF raises its forecasts for China’s economic growth in 2024 and 2025

The International Monetary Fund said that the Chinese economy is expected to grow 5% this year after a “strong” performance in the first quarter of the year, raising its previous forecast of 4.6%, but it expected slower growth in the coming years.

The Fund said it had revised its GDP target for 2024 and 2025 to an increase of 0.4%, but warned that growth in China would slow to 3.3% by 2029 due to high rates of aging and a slowdown in productivity expansion.

The Fund now expects the world’s second-largest economy to grow by 5% in 2024, and growth to slow in 2025 to 4.5%.

Chinese authorities expect moderate growth in consumption inflation in the country while strengthening policies supporting consumption demand.

During a press conference on Friday, May 17, Liu Aihua, spokeswoman for the National Statistics Authority, indicated that there was an improvement in consumption inflation in the country, as consumer demand, along with demand for services in particular, continued to recover during the month of last April.

She said that food prices are expected to remain low due to seasonal factors, while support provided by equipment renewal and trade in consumer goods will contribute to consumer demand continuing to improve, and general prices will stabilize and witness moderate growth, according to the Chinese Xinhua News Agency.