The International Monetary Fund on Thursday asked China to proceed with reopening its economy, citing the impact of China’s exit from a Covid-Zero policy as the most significant factor for global growth this year.
The IMF’s Kristalina Georgieva stated that she believes a global recession could be avoided even if growth slows from a projected 3.2% in 2022. She also underlined China’s impact on the world economy, stating that if China continues on its current path of reopening the economy, the country will become a positive contributor to average global growth by mid-year or so.
Therefore, she strongly suggested that China proceed with the reopening.
The World Economic Outlook will be updated on January 31, and the fund does not anticipate a significant downgrade of its October prediction of a 2.7% rise in global GDP.
She expects global growth to slow at the end of the year before resuming again next year.
