Georgieva praises China’s economic recovery, but notes that “growth momentum has slowed considerably”
China has an important role to play in the global economy as it recovers from Covid 19, but its growth is slowing, International Monetary Fund Managing Director Kristalina Georgieva said on Monday.
The head of the Washington-based crisis lender held a virtual meeting with Chinese Premier Li Keqiang and discussed topics ranging from inflation to recovery from the pandemic, according to a statement released by the IMF.
âChina has achieved a truly remarkable recovery, but its growth momentum has slowed considerably. With China being a vital engine of global growth, taking strong action to support high-quality growth will not only help China, but the world, âGeorgieva said.
In October, the IMF lowered its growth forecast for China due to an accelerated decline in government spending, forecasting an 8% expansion this year and 5.6% in 2022.
While the 2021 figure is Beijing’s highest growth rate since 2011, analysts warn China faces painful consequences from weak real estate and shocks from soaring coal prices and to shortages.
With China embroiled in an ongoing feud with the United States, Georgieva said countries should also “cooperate to reduce trade tensions and strengthen the multilateral trading system, which is a key engine for growth and jobs.” .