China News Service, Beijing, February 3rd, Washington News: The International Monetary Fund (IMF) released the 2023 Article IV Consultation Report with China on the 2nd local time. The IMF welcomes China's strong economic recovery after the epidemic and predicts that China's economy will grow by 4.6% in 2024.
The report said that China's economy will see a strong recovery in 2023 due to its reopening after the epidemic. The recovery is mainly driven by domestic demand (especially private consumption) and also benefits from supportive macroeconomic policies, including further loosening of monetary policy and measures for enterprises. and tax relief for households and fiscal spending for disaster relief. For 2024, the IMF expects China's economy to grow by 4.6%, an increase of 0.4 percentage points from the October 2023 forecast.
The Executive Board of the IMF welcomes the strong recovery of China's economy after the epidemic, and recommends that the government needs to continue to provide macroeconomic support and carry out market-oriented structural reforms to mitigate downside risks and achieve high-quality, green, and balanced growth.
Regarding the real estate market, the IMF Executive Board stated that real estate developers that do not have the ability to operate as a going concern should accelerate their exit from the market, allocate more funds to ensure that developers have the ability to deliver properties, and help real estate developers that have the ability to operate sustainably to repair their assets and liabilities. and adapt to a shrinking real estate market, allowing the market to play a greater role in price adjustments.
The IMF also welcomed China's role in promoting multilateral economic cooperation, including its support for the restructuring of sovereign debt of low-income and vulnerable countries and its role in responding to the global climate crisis.
According to Article 4 of the IMF Charter, the IMF will send working groups to member economies every year to conduct research, consult with member economies on macroeconomic policies and economic development situations, and discuss them at the Executive Board of the IMF's decision-making body. (over)