Connect with us

Hi, what are you looking for?

News

IMF sees scope for growth from recalibration of China’s zero-COVID policy

REUTERS

WASHINGTON — The International Monetary Fund (IMF) sees scope for a further gradual, safe recalibration of China’s zero-COVID policy that could allow economic growth in the country to pick up in 2023, an IMF spokesperson said on Wednesday.

China’s strict containment measures in Shanghai and elsewhere dampened domestic economic activity in the world’s second-largest economy earlier this year and spilled over to other countries through supply chain interruptions, the spokesperson said in response to a query from Reuters. 

“The authorities have since made the containment policies nimbler and more targeted. There is scope for further gradual, safe recalibration of the COVID strategy,” the spokesperson said. 

Earlier on Wednesday, the Chinese cities of Guangzhou and Chongqing announced an easing of coronavirus disease 2019 (COVID-19) curbs following clashes between demonstrators in southern Guangzhou and police amid a string of protests against the world’s toughest coronavirus restrictions. 

The demonstrations, which spread over the weekend to other cities including Shanghai and Beijing, marked a rare show of public defiance since President Xi Jinping came to power in 2012. 

IMF Managing Director Kristalina Georgieva on Tuesday flagged a possible downgrade in the IMF’s forecast for China’s economic growth, citing ongoing COVID-19 pandemic and problems in China’s real estate sector. 

The IMF had forecast 3.2% growth in China’s economy in 2022, improving to 4.4% in 2023, but the risks were now on the “downside,” and a downgrade was possible, she said. 

Any weakening of growth in China would have ramifications for the global economy, given the size of the Chinese economy, and the IMF is already expecting about a third of countries to be in recession in 2023. 

The IMF spokesperson did not specifically address the protests, but said COVID and COVID-related restrictions were generally hard on people, and had been particularly challenging in China due to its zero-COVID policy. 

Fresh outbreaks in China could weigh on activity in the near term, the IMF spokesperson warned, but recalibrated policies should allow economic growth in China to pick up next year under the baseline. 

That in turn would support global growth in a difficult year, the IMF spokesperson said. — Reuters

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

STOCKS continued to decline on Tuesday on faster-than-expected January inflation that fueled expectations of another big rate hike by the Bangko Sentral ng Pilipinas...

News

PHILIPPINE STAR/ WALTER BOLLOZOS THE PESO sank to the P55-per-dollar level on Tuesday as January headline inflation was faster than expected and amid hawkish...

News

President Ferdinand Marcos Jr. answers questions from the media after his first Cabinet meeting in Malacañan Palace, July 5, 2022. — PHILIPPINE STAR/ KRIZ...

News

REUTERS AGRICULTURE industry representatives said the government has not adequately supported farmers in achieving competitiveness against imports, which they called a necessary step before...

News

POLLOC FREEPORT AND ECOZONE — BARMM FACEBOOK PAGE THE classification of economic zone logistics services enterprises (ELSEs) as eligible for incentives under the Strategic...

News

BW FILE PHOTO A BILL that requires real estate investment trusts (REITs) to reinvest proceeds from their fundraising activities in the Philippines has been...

You May Also Like

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.