IMF says China recovering fast ahead of most big economies
WASHINGTON: China is recovering fast ahead of most large economies, but the recovery is still unbalanced and facing significant downside risks, the IMF has said, projecting an eight per cent growth rate for the world's second largest economy in 2021.
However, the main concern around the Chinese recovery that the International Monetary Fund (IMF) has is the lack of balance, said Hlge Berger, Mission Chief for China and Assistant Director, Asia and Pacific Department of the IMF.
The recovery is still relying mostly on public support. Private investment has strengthened recently, but consumption is lagging. Growth rates and consumption recently have been higher, but the level of consumption compared to its pre-crisis trend is still rather low, he told reporters during a conference call on Saturday on the publication of the 2020 China Article IV Staff Report.
“China is recovering fast ahead of most large economies, but the recovery is still unbalanced and facing significant downside risks. We are seeing growth at around 2 per cent in 2020 and around 8 per cent in 2021. December numbers have been surprising on the upside, so there are some upside risks to that forecast,” said Berger.
Noting that structural reforms have been progressing despite the pandemic which is quite an achievement in China, Berger said that this reform effort has been predominately in the area of opening financial services to the outside world, and less so in the real sector. Real sector reforms, however, are important, he said.
China, Berger said, can also help others to overcome the challenges from the crisis.
“There we note the very helpful engagement of China to providing debt relief for low-income countries,” he added.
China is the world's second-largest economy behind the US.
china is a fake economy. they just build useless infrastructure that nobody wants and count that as growth.
US & India have been shrieking China collapse under debts for last 30yrs, yet China continue to prosperous, so who is lying? If China infrastructure is useless, why India is still dreaming of changing its dilapidated infrastructure? China debt to GDP ratio is 60%, but all are domestic in RMB. India debt to GDP is 90%, majority external in USD at 8% interest it can never pay off. Jp debt to GDP is 300%, all domestic in Yen. US $27T debts is 120% to GDP, all external in USD. Now which nation will ... Read More
Check your knowledge China and Germany have huge surplus. It's USA and india who are having debts.
Thats what World War lll was about
Sir. India is a very big country with the natural gifts from Ramayana and Mahabharata. India must rule in future. Agriculture is the base at global level and India is very strong than China. I quote with my experience that.India is great by all respect.
Do you guys know that China has completely stopped importing from India but India has not stopped importing from China.....what a shame for all the big hue and cry we made....all we could ban was a few small apps.
Feku has subsidized steel and broken rice to export first time to China. Cotton continue big export. Coal, iron ore, scrap metal, etc. export are restricted by India side. Only China banned to India is Indian workers and COVID infested food chain like seafood.
Google rice to china from india
that was the idea by the devious Chinese all along !
No one would be surprised by this news. China go nment put the entire world in the mess and now rep fruits of their disadvantage. Boycott Chinese goods are the only answer to get out of this mess.
All Countries united only can fight this monster. Trump initiated but with little support and wrong strategy.
Another heart broken news for India. While starting with higher level in 1947, India is now 6x smaller than China economy, still using same 1940's Brits Raj old railway while Chinese travel in FSR. When India is struggling to restart its 30% plunging economy, China is roaring ahead with 9% growth.
India needs to plan the global projects for answering the China's Belt and Road Initiative project.