China recovering fast, IMF projects 8% growth this year

Washington, January 10

China is recovering fast ahead of most large economies, but the recovery is still unbalanced and facing significant downside risks, the IMF has said, projecting 8 per cent growth for the world’s second largest economy in 2021.

However, the main concern around the Chinese recovery that the International Monetary Fund (IMF) has is the lack of balance, said Hlge Berger, Mission Chief for China and Assistant Director, Asia and Pacific Department of the IMF. “China is recovering fast ahead of most large economies, but the recovery is still unbalanced and facing significant downside risks. We are seeing 2 per cent growth in 2020 and around 8 per cent in 2021. December numbers have been surprising on the upside, so there are some upside risks to that forecast,” said Berger.

On the other hand, he said there are significant downside risks. Domestically, there is a pandemic risk that is still around. Also, external environment has generally become a little more difficult for China and its economic ties with other nations. — PTI