Currency strategists at the International Monetary Fund have raised their forecast for China's GDP growth in 2024. They now expect the country’s economy to grow by an impressive 5%.
The IMF has also upgraded its GDP growth forecast for China in 2025, now predicting a 4.5% increase. The new figures represent an increase of 0.4 percentage points from earlier forecasts and are above the April estimates.
However, the IMF has warned of several risks that could dampen China's economic growth in the medium term. These include ongoing problems in the Chinese real estate sector and weak domestic demand, which the government needs to spur. "Achieving high-quality growth will require structural reforms," the IMF emphasized.
Earlier, the IMF predicted a global economic downturn due to rising trade tensions between China and the United States. The agency cautioned that the global GDP could shrink by 7%. According to estimates, bilateral relations between Washington and Beijing could deteriorate over the next few years, with more than 3,000 new trade restrictions being imposed. This in turn could cripple the global economy, currency strategists summed up.