From CNBC: 2024-05-28 22:01:47

The International Monetary Fund raised China’s growth forecast for 2024 to 5% from 4.6% due to strong first quarter figures. By 2025, the IMF expects 4.5% growth, but predicts a slowdown to 3.3% by 2029 due to an aging population and slower productivity. China’s first quarter GDP grew by 5.3%.

Chinese authorities unveiled measures to assist the struggling real estate sector, including removing the floor on mortgage rates. While the IMF welcomed these actions, they called for more comprehensive measures to protect homebuyers and resolve insolvent developers. They emphasized the importance of balancing housing demand and restoring equilibrium.

During her visit to China, the IMF’s first deputy managing director met with top officials including the People’s Bank of China Governor and Ministry of Finance Vice Minister. Efforts to support domestic demand and address imbalances are key to achieving high-quality growth. President Xi Jinping highlighted the need for promoting high-quality employment, especially for college graduates and young people.

Read more: IMF raises China’s growth forecast on strong Q1 and policy measures