China’s growth forecast for 2019 raised by IMF despite trade war and global downturn
- International Monetary Fund sees global growth rebound in the second half of the year on easing of trade tensions
- But IMF warns that risks to the forecast remain to the downside
The US-China trade war will have less impact on the Chinese economy than initially thought, with the International Monetary Fund increasing its growth forecast for the country this year.
The International Monetary Fund (IMF) now forecasts that China’s economy will grow by 6.3 per cent in 2019, up 0.1 per cent on its last prediction. This is despite the fact that the fund downgraded its growth outlook for most major economies, as well as the global economy, amid a series of headwinds.
“China has ramped up its fiscal and monetary stimulus in response to the trade tariffs,” Gita Gopinath, the IMF’s chief economist, said at a press briefing in Washington. “Furthermore, the outlook for US-China trade tensions has improved as the prospect of a trade agreement take shape. These responses have helped reverse the tightening of financial conditions to varying degrees across countries.”
