IMF Chief Urges China to Continue Reopening Economy, Key to global Growth This Year

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.