The International Monetary Fund upgraded its projections for China’s annual economic growth this year and next as the nation recorded a stronger-than-expected performance in the third quarter and Beijing rolled out policies to support the recovery, reports Caixin. The IMF expects China’s gross domestic product to expand 5.4% in 2023 and 4.6% in 2024, according to its Article IV Mission statement published Tuesday. Those are each 0.4% higher than the fund’s previous projections in October.
Beijing’s recent plan to issue more sovereign debt will help the economy recover and “is one of the reasons we upgraded our growth forecast,” the IMF’s First Deputy Managing Director Gita Gopinath said Tuesday in a press briefing in Beijing.
The institution noted, however, that the slower growth next year is likely to be due to ongoing risks from the property slump and subdued external demand. It called on the government to press ahead with efforts to contain risks from the real estate market and local government debt to boost sentiment and the near-term growth outlook.