IMF lifts China’s economic growth target from 4.6% to 5% in 2024
Having upgraded China’s economic growth target from 4.6% to 5% in 2024 on a strong first quarter, the International Monetary Fund (IMF) Deputy Managing Director lauded China’s efforts to prop up its property market.
Key quotes
IMF expects China's economic growth to slow to 3.3% by 2029 due to aging, slower productivity growth.
IMF upgrades China's 2025 economic growth target to 4.5% from 4.1%.
We see scope for a more comprehensive policy package to address property sector issues.
Central government resources should be deployed to help buyers of pre-sold unfinished homes.
Macroeconomic policies should support domestic demand and mitigate outside risks.
Policy should prioritise providing central government support to the real estate sector.
Welcomes monetary policy measures implemented in 2024 to date.
China should continue with economic reforms to boost productivity, level the playing field among all types of firms.
Create a good business environment that is market orientated and law-based.
IMF research shows over a 15 year period, with good reforms, China's GDP could be 18% higher.
Market reaction
AUD/USD clings to moderate gains above 0.6650, despite these headlines, as markets assess the latest mixed Australian economic data. The pair is up 0.14% on the day, as of writing.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
