(MENAFN) The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, announced on Sunday that China is projected to give a significant boost to the world economy, accounting for about a third of global growth in 2023. Speaking at the 2023 China Development Forum in Beijing, Georgieva stated that "the robust rebound means China is set to account for around one third of global growth in 2023 – giving a welcome lift to the world economy." This is good news for the global economy, which has been facing challenges due to the COVID-19 pandemic.
According to the IMF analysis, a 1 percent increase in GDP growth in China will lead to a 0.3 percent point increase in growth in other Asian economies. This suggests that China's economic growth has a positive spillover effect on other economies in the region. Despite uncertainties surrounding the global economy, Georgieva highlighted some "green shoots," including in China.
Georgieva emphasized that with such a solid recovery, China can now build on positive momentum and, through comprehensive policies, stay on the growth path towards convergence with advanced economies. The Chinese government has already implemented various measures to support economic growth, including fiscal stimulus and monetary easing. These policies, combined with China's strong manufacturing base and growing consumer market, have helped to drive the country's economic recovery.
The IMF's research also reveals that productivity-enhancing reforms in China could lift real GDP by as much as 2.5 percent by 2027, and by around 18 percent by 2037. This growth would be both higher quality and more inclusive, benefiting not only the Chinese economy but also other countries in the region and around the world.
Overall, China's projected contribution to global economic growth in 2023 is a positive sign for the world economy. It highlights the importance of China's role as an economic powerhouse and its potential to drive growth in other countries. With continued policy support and productivity-enhancing reforms, China's economic growth is likely to remain strong and contribute to global economic recovery in the coming years.
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