Despite the slowdown, China will continue to be a major contributor to global growth

Despite a slight slowdown, China must continue to play the role of the main engine of global economic growth in 2024, a senior official of the International Monetary Fund (IMF) said.

“China will remain a major contributor (to global economic growth) with more than a quarter of global growth this year,” said Steven Barnett, the IMF's China representative. The head of the Bretton Woods institution, quoted by Chinese media, returned to the measures China has taken to revive the growth of its economy. In particular, he mentioned the adjustments that China has made in the real estate sector. According to him, these adjustments should help stabilize economic growth.

In its latest projections, the IMF estimated that the Chinese economy should grow by 4.6% in 2024, down from the 5.2% achieved in 2023. This decline in growth is attributed to the financial crisis. real estate that casts its shadow demand and trust. The Chinese government must prioritize stabilizing economic growth in 2024.

New policy measures are expected to stimulate economic activity during the year. Since the last Central Economic Work Conference, which in December 2023 set China's economic policy priorities for 2024 and called for further measures to stabilize expectations, economic growth and employment, Chinese lawmakers have taken significant policy measures to consolidate economic recovery.

The People's Bank of China (PBOC, the central bank) last week unveiled a set of measures aimed at stimulating the economy, notably a reduction in minimum reserve requirements, to inject nearly $140 billion (€130 billion) into the economy. . In October 2023, China announced the issuance of additional government bonds worth 1 trillion yuan (129 billion euros), of which 500 billion were issued in 2023 and the other half will be issued this year.


Elliot Frost

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