WASHINGTON – China has an important part to play in the global economy as it recovers from Covid-19, but its growth is slowing, International Monetary Fund (IMF) managing director Kristalina Georgieva yesterday said.
The head of the Washington-based crisis lender held a virtual meeting with Chinese Premier Li Keqiang and discussed topics ranging from inflation, to the recovery from the pandemic, according to a statement released by IMF.
“China achieved a truly remarkable recovery, but its growth momentum has been slowing notably. As China is a vital engine for global growth, taking strong actions to support high-quality growth will help not only China, but the world,” Georgieva said.
In October, IMF lowered its forecasts for China’s growth due to an accelerating pullback in public spending, predicting an 8% expansion this year and 5.6% growth next year.
While this year’s figure is Beijing’s strongest rate of growth since 2011, analysts warned China is facing a painful fallout from real estate weakness, and shocks from surging coal prices and shortages.
Georgieva added that Beijing had made “important contributions” to expanding vaccine access so the world can achieve IMF’s goal of innoculating 40% of the population of each country against Covid-19 by the end of this year, and 70% by the middle of next year.
With China embroiled in an ongoing spat with the United States, Georgieva said countries need “to cooperate to reduce trade tensions and strengthen the multilateral trading system, which is a key engine for growth and jobs”.
IMF is pushing the G20 group of the world’s richest countries, including China, to extend and improve their debt relief initiative, warning last week that many countries face a dire crisis without the help.
The group’s Debt Service Suspension Initiative expires at the end of the year, and Georgieva said she “welcomes continued engagement with China on” the G20’s Common Framework that continues some of the relief. – AFP, December 7, 2021
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