IMF Lifts China Growth Forecast to 5% Citing Strong Start to 2024

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The IMF has called on Beijing to provide more monetary and fiscal support for the economy, including further steps to resolve the housing crisis.Photo: Bloomberg

(Bloomberg) — The International Monetary Fund (IMF) now expects China’s economy to grow 5% this year, raising its forecast from 4.6% earlier this year to reflect a strong expansion at the start of 2024 and additional support from the government.

The IMF expects the momentum to continue, raising its gross domestic product forecast for next year to 4.5% from 4.1%, according to a press release published Wednesday. China is targeting growth of around 5% this year. In the first quarter it reported a better-than-expected expansion of 5.3%, although a drawn-out slump in housing continues to weigh on domestic demand.