China’s economic recovery dependent on ‘calibrating’ coronavirus strategy, IMF says

Name: Two massive Chinese cities ease Covid-19 curbs as protests spread
Uploaded: 2022-12-02T10:00:30.000Z
Duration: 1 min 31 s
Description: Two massive Chinese cities ease Covid-19 curbs as protests spread

IMF managing director Kristalina Georgieva says China is being held back by Covid-19 lockdowns and challenges in the real estate sector

The top IMF economist added that China has a leading role to play in preventing further fragmentation of the global economy

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IMF managing director Kristalina Georgieva says China must calibrate its approach to fighting the virus. Photo: Reuters

Ji Siqi

Published: 6:00pm, 2 Dec 2022

As global growth slows down, calibrating coronavirus containment measures will be critical for recovery of the world’s second largest economy, said the head of the International Monetary Fund (IMF) on Friday.

IMF managing director Kristalina Georgieva said the government should take more action to safeguard financial stability.

“Activity in China is held back by ongoing Covid-19 lockdowns and challenges in the real estate sector,” she said at the International Financial Forum in Guangzhou via video link.

“Further calibrating the Covid strategy to mitigate its economic impact will be critical to sustain and balance the recovery.”

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Two massive Chinese cities ease Covid-19 curbs as protests spread

The IMF expects the world economy to grow 2.7 per cent next year, but there is a 25 per cent probability that growth will fall below 2 per cent, while at least one third of the global economy is expected to be in recession.

US Federal Reserve Chair Jerome Powell said on Wednesday that China’s zero-Covid restrictions were dragging on global supply chains.

Georgieva and World Bank president David Malpass told the Reuters NEXT conference in New York on Thursday they will travel to Beijing next week to join a meeting with heads of other international institutions and Chinese authorities to discuss the country’s approach to debt relief for poorer countries, coronavirus policies, the property sector and other economic issues.