IMF Sees Sharp Dip In China’s Growth

The International Monetary Fund has sharply cut its forecasts for China’s growth this year and next. In its latest half-yearly update to its World Economic Outlook, the Fund has reduced its forecast for 2012′s GDP growth to 8.2% from the 9% it forecast in September, and to 8.8% from 9.5% for 2013. The cuts come against a background of what it says are dimming prospects for the global economy and increasing risks to financial stability. The IMF now expects the world economy to grow at 3.3% this year, down from 3.8% last year, with world trade growth slowing to 3.8% from 6.9%. The IMF puts China among those emerging economies that can afford “to deploy additional social spending to support poorer households in the face of weakening external demand”.

Earlier this month, the World Bank also cut its forecast for China’s GDP growth this year, to 8.4% from June’s 8.7%. But unlike the IMF, which foresees recovery in China’s economy in 2013, the Bank said it expected growth to continue slowing next year.

About these ads

Leave a comment

Filed under Economy

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s