China’s 2019 economic growth forecast cut by IMF as risks and uncertainties of US trade war remain

The International Monetary Fund downgraded its prediction to 6.2 per cent having only raised it to 6.3 per cent two months ago

The Trump administration has since increased existing tariffs on Chinese imports and threatened further duties on the remaining goods

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The forecast is still within the growth target range of 6 per cent to 6.5 per cent set by Beijing in March. Photo: AP

Published: 8:30pm, 5 Jun 2019Updated: 8:33pm, 5 Jun 2019

China’s 2019 economic growth forecast has been cut from 6.3 per cent to 6.2 per cent by the International Monetary Fund with the world’s second largest economy still facing downside risks and uncertainty over the trade war with the United States.

The downgrade came after the fund paid a visit to Beijing and the western province of Guizhou for intensive discussions with Beijing’s policymakers during its annual assessment of the country’s economic and financial health. It was merely two months after the fund raised its forecast for China’s economic growth this year from 6.2 per cent to 6.3 per cent.

The forecast, though, is still within the growth target range of 6 per cent to 6.5 per cent set by Beijing in March.

The negative impact from the tariff increases imposed by the Trump administration more than offset the positive effect from Beijing’s supportive macro policies, said Kenneth Kang, deputy director of the International Monetary Fund (IMF) Asia and Pacific Department, in Beijing on Wednesday.

China’s economic growth is now expected to slow further to 6.0 per cent in 2020, also a lower estimation by the IMF from the 6.1 per cent predicted in April.

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