Beijing (AFP)
The International Monetary Fund predicts that China’s economy will account for a quarter of global growth this year, although uncertainty surrounding COVID-19 and the real estate sector could slow momentum.
After nearly three years of strict health restrictions, Beijing ended its zero covid policy in December, which has hurt the economy.
And the Asian giant expects growth of just 3% in 2022, which will be affected by the strong confinement and the worsening of the crisis in the main real estate sector. It helps the global economy.” “This is good news for China and the world, as the Chinese economy is expected to contribute a quarter of global growth this year,” he added.
On Monday, the International Monetary Fund revised its growth forecast for China to 5.2% in 2023, after raising its global growth forecast based on the country’s reopening.
Chinese officials said the large number of virus cases that accompanied the country’s reopening had already passed their peak, and the surge in travel coincided with the biggest Lunar New Year holiday in years, boosting business.
However, the assessment warned of “significant economic challenges” ahead. According to him, “the fall in the real estate market remains a great resistance and there is still some uncertainty about the evolution of the virus”. The real estate sector, along with the construction sector, which accounts for more than a quarter of China’s gross domestic product, has been hit hard since Beijing started ramping up excessive debt and rampant speculation in 2020.
Source: Al Ittihad
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