(MENAFN) China is set to give a significant boost to the world economy, accounting for around one third of global growth in 2023, according to the managing director of the International Monetary Fund (IMF). Speaking at the 2023 China Development Forum in Beijing on Sunday, Kristalina Georgieva said that the country's robust rebound will provide a welcome lift to global economic growth.
Georgieva noted that IMF analysis shows that a 1 percent point increase in GDP growth in China would lead to a 0.3 percent point increase in growth in other Asian economies. While uncertainties remain high, she emphasized that the news is not all bad, and there are some "green shoots" emerging, particularly in China.
She also highlighted the potential for productivity-enhancing reforms in China to lift real GDP by as much as 2.5 percent by 2027 and by around 18 percent by 2037. This growth would be not only higher quality but also more inclusive, bringing benefits to a wider range of people in the country.
Georgieva urged China to build on its positive momentum and use comprehensive policies to stay on the growth path towards convergence with advanced economies. With its solid recovery, China has the opportunity to drive global growth and shape the direction of the world economy in the coming years.
The IMF's assessment of China's role in global growth reflects the country's increasing importance on the world stage. In recent years, China has become the world's second-largest economy and a major manufacturing and trading hub. As such, its economic performance has a significant impact on other countries and regions, particularly in Asia. The IMF's analysis suggests that China's growth could be a key driver of a more robust and inclusive global recovery in the years ahead.
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