(MENAFN) On Wednesday, the International Monetary Fund (IMF) raised its growth forecast for China for 2024 to 5 percent, highlighting the impact of recent measures implemented by Beijing to rejuvenate its faltering economy. In a press statement, the IMF projected that China's economic growth would remain resilient at 5 percent in 2024, before slowing to 4.5 percent in 2025. This revision was prompted by robust GDP data from the first quarter of the year and the recent policy actions undertaken by Chinese authorities.

Initially, the IMF had anticipated a growth rate of 4.6 percent for the current year, which was slightly below the approximately 5 percent target set by Chinese officials in March. The revision reflects a more optimistic outlook in light of the government's efforts to address economic challenges. Over the past few years, China's economic growth has been hampered by a prolonged debt crisis in the real estate sector, which accounts for a significant quarter of the nation's gross domestic product. Additional factors such as weak consumer spending and persistent deflation have also contributed to the slowdown.

The IMF welcomed the recent official steps taken to bolster the housing market, recognizing them as essential for the sector’s adjustment towards a more sustainable trajectory. It noted that while the ongoing correction in the housing market is necessary, a more comprehensive policy package would aid in facilitating a smoother and more cost-effective transition. Such measures would also help mitigate potential downside risks, ensuring a more stable economic environment.

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