IMF cuts China growth forecast for 2021 and 2022 - RFI

IMF cuts China growth forecast for 2021 and 2022 ... China's economy will grow slower than initially expected this year owing to a "stronger-than- ... AddRFItoyourhomescreen Skiptomaincontent Français English Español Português PortuguêsdoBrasil Hausa Kiswahili Mandenkan Fulfulde România Русский TiếngViệt 华语 華語 ភាសាខ្មែរ فارسی News Home France Europe Africa International Science&Technology Business Culture Sport ListentoRFI Podcasts ParisLive Videos Live Onsocialnetworks ListentoRFI Applications LearnFrench Whoarewe? Contactus Becomeapartnerradio Advertising Buycontent Workwithus Legalnotice Privacy Cookies PreferenceCenter RFISavoirs RFIMusic RFIInstrumental France24 MCD InfoMigrants CFI Académie FranceMédiasMonde ©2022CopyrightRFI-Allrightsreserved.RFIisnotresponsibleforthecontentofexternalwebsites.AudienceratingscertifiedbyACPM/OJD. #UKRAINE #PresidentialElection2022 France Africa International Science&Technology Culture /Livenews IMFcutsChinagrowthforecastfor2021and2022 Issuedon:12/10/2021-15:08Modified:12/10/2021-15:06 2min Beijing(AFP)– Advertising Readmore China'seconomywillgrowslowerthaninitiallyexpectedthisyearowingtoa"stronger-than-anticipated"pullbackinpublicspending,theInternationalMonetaryFundforecastTuesdaywhilewarningthataweakeningpropertymarketcouldbringafurtherblow.The8.0percentpredictionintheIMF'slatestWorldEconomicOutlookreportisdown0.1percentagepointsfromitsJulyestimateasanalystswarnChinaisfacingapainfulfalloutfromrealestateweaknessandshocksfromsurgingcoalpricesandshortages.ButthefigureisstillChina'sstrongestgrowthratesince2011.Theworld'ssecond-largesteconomywastheonlymajoronetoexpandlastyearafterthecoronaviruspandemicforcedgovernmentsacrosstheglobetolockdown.TheIMFalsolowereditsoutlookfornextyearto5.6percent.ConcernsoverChinahaveintensifiedinrecentweeksasgovernmentcurbsonthepropertymarketpiledpressureonoverleverageddevelopers--notablyEvergrande.Measuresbylocalgovernmentstomeetshort-termclimatetargetsalsoledtoapowercrunch.OnTuesday,theIMFsaid:"China'sprospectsfor2021aremarkeddownslightlyduetostronger-than-anticipatedscalingbackofpublicinvestment."ThedownwardadjustmentistheIMF'ssecondsinceApril,whenitpeggedfull-yeargrowthat8.4percent.Italsowarnedofrisksthatcouldthreatentheresilienceoftherecovery."Large-scaledisorderlycorporatedebtdefaultsorrestructuring,forinstanceinChina'spropertysector,couldreverberatewidely,"itsaid.ThetravailsofEvergrande,whichisstrugglingwithmorethan$300billioninliabilities,havethrownaspotlightonChina'spropertydevelopers--afterBeijingintroducedmetricstocapdebtratioslastyear.Whileanalystsgenerallybelievethefirm'sproblemswillnottriggera"Lehmanmoment",manywarntheywillworsenaslowdowninthepropertysector,whichaccountsforamassivepartoftheChineseeconomy.TheIMFaddedthatanescalationoftradeandtechnologytensionsbetweentheUnitedStatesandChinacould"weighoninvestmentandproductivitygrowth,raisingadditionalroadblocksintherecoverypath".Shouldtheworld'stwobiggesteconomiesdecoupleinbasicscientificresearch,therecouldalsobe"bignegativeeffects"onglobalproductivity,withanestimateddeclineofupto0.8percenttostart,itsaid.Andinthelongerterm,demographicchallengesinChinaandotheremergingmarketsmakeitmorepressingtoreverseapersistentdeclineinlong-termgrowthandbuildamorebuoyantpost-pandemicglobaleconomy.CensusresultspublishedinMaythisyearshowedChina'spopulationgrowingattheslowestpaceindecades,fuellingconcernsofademographicslumpintheageingcountry.Meanwhile,theIMFexpectsmonetarypolicyinChinatobe"moderatelytight"in2021,andforthistrendtoremainintonextyear. ©2021AFP Pagenotfound Thecontentyourequesteddoesnotexistorisnotavailableanymore.