IMF says China will account for one-third of global growth in 2023

By Gozde Bayar

ANKARA (AA) - China is projected to give a significant boost to the world economy, accounting for about a third of global growth in 2023, the managing director of the International Monetary Fund said on Sunday.

“The robust rebound means China is set to account for around one third of global growth in 2023 – giving a welcome lift to the world economy,” Kristalina Georgieva said at the 2023 China Development Forum in the capital Beijing.

According to the IMF analysis, a 1% point increase in GDP growth in China will lead to a 0.3% point increase in growth in other Asian economies, she said.

Although uncertainties are exceptionally high, she said news of the world economy is not all bad as there are some “green shoots,” including in China.

“With such a solid recovery, China can now build on positive momentum and – through comprehensive policies – stay on the growth path towards convergence with advanced economies,” she added.

IMF research also shows that productivity-enhancing reforms in China could lift real GDP by as much as 2.5% by 2027, and by around 18% by 2037 – growth that would be both higher quality and more inclusive.