Economic news

IMF chief warns of risks from a prolonged China slowdown

2022.04.21 07:16

IMF chief warns of risks from a prolonged China slowdown
FILE PHOTO: IMF Managing Director Kristalina Georgieva speaks during a conference hosted by the Vatican on economic solidarity, at the Vatican, February 5, 2020. REUTERS/Remo Casilli

BOAO, China (Reuters) – A prolonged slowdown in China would have substantial global spillovers, IMF Managing Director Kristalina Georgieva said on Thursday, but added that Beijing has room to adjust policy to provide support.

The International Monetary Fund on Tuesday cut its growth forecast for China this year to 4.4%, well below Beijing’s target of around 5.5%, on the risks of widespread COVID-19 lockdowns and supply chain disruptions.

In a video speech to the annual Boao Forum for Asia, Georgieva said China’s actions to counter its economic slowdown are vital for the global recovery.

“Fortunately, China has policy space to provide macroeconomic policy support, including shifting the focus toward vulnerable households to strengthen consumption, which can also help support China’s climate goals by steering economic activity to lower-carbon sectors,” Georgieva added.

“Stronger policy efforts in the property sector can also help secure a balanced recovery.”

At the same venue, China’s President Xi Jinping said China’s economy is resilient and that its long-term trend had not changed.

In light of growing headwinds, foreign brokerages have also been slashing GDP forecasts for China, after weakness in March activity data raised outlook risks as the lockdown in the mega city of Shanghai drags on.

Barclays (LON:BARC) on Tuesday cut their already below-consensus forecast to 4.3%, from 4.5% previously, while BofA downgraded their forecast for this year to 4.2%, from 4.8% before.

Nomura on Thursday revised their forecast to 3.9% this year, from 4.3% previously, and second-quarter growth is expected to expand by a meagre 1.8%, according to their baseline estimates.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 76,248.43 1.90%
vested-xor
Vested XOR (VXOR) $ 3,405.08 99,999.99%
ethereum
Ethereum (ETH) $ 2,918.28 3.46%
tether
Tether (USDT) $ 1.00 0.10%
solana
Solana (SOL) $ 200.28 6.47%
bnb
BNB (BNB) $ 600.41 0.75%
usd-coin
USDC (USDC) $ 0.999914 0.02%
xrp
XRP (XRP) $ 0.551065 0.92%
dogecoin
Dogecoin (DOGE) $ 0.199987 4.49%
staked-ether
Lido Staked Ether (STETH) $ 2,923.21 3.76%
cardano
Cardano (ADA) $ 0.43005 16.69%
tron
TRON (TRX) $ 0.160971 0.10%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,458.88 3.67%
the-open-network
Toncoin (TON) $ 4.88 1.16%
shiba-inu
Shiba Inu (SHIB) $ 0.000019 2.83%
avalanche-2
Avalanche (AVAX) $ 27.64 2.56%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 76,229.42 1.90%
weth
WETH (WETH) $ 2,918.59 3.45%
chainlink
Chainlink (LINK) $ 12.84 4.43%
bitcoin-cash
Bitcoin Cash (BCH) $ 372.06 0.56%
sui
Sui (SUI) $ 2.30 2.62%
polkadot
Polkadot (DOT) $ 4.33 6.12%
leo-token
LEO Token (LEO) $ 6.35 3.21%
usds
USDS (USDS) $ 1.00 0.16%
litecoin
Litecoin (LTC) $ 71.32 1.01%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,070.05 3.47%
uniswap
Uniswap (UNI) $ 8.75 1.93%
near
NEAR Protocol (NEAR) $ 4.20 1.43%
aptos
Aptos (APT) $ 9.72 1.72%
pepe
Pepe (PEPE) $ 0.000011 6.24%
bittensor
Bittensor (TAO) $ 503.43 1.45%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.41 1.86%
internet-computer
Internet Computer (ICP) $ 7.73 1.31%
dai
Dai (DAI) $ 1.00 0.10%
stellar
Stellar (XLM) $ 0.101732 4.02%
monero
Monero (XMR) $ 165.10 1.45%
ethereum-classic
Ethereum Classic (ETC) $ 20.22 0.71%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.11%
kaspa
Kaspa (KAS) $ 0.113497 4.31%
crypto-com-chain
Cronos (CRO) $ 0.104259 20.76%
whitebit
WhiteBIT Coin (WBT) $ 19.60 1.84%
aave
Aave (AAVE) $ 181.08 0.29%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.347445 2.75%
blockstack
Stacks (STX) $ 1.66 1.28%
okb
OKB (OKB) $ 40.17 0.73%
first-digital-usd
First Digital USD (FDUSD) $ 1.00 0.18%
dogwifcoin
dogwifhat (WIF) $ 2.34 0.08%
arbitrum
Arbitrum (ARB) $ 0.573514 1.16%
filecoin
Filecoin (FIL) $ 3.72 0.04%
mantle
Mantle (MNT) $ 0.659737 3.82%