IMF CHIEF : CHINA TO ACCOUNT FOR THIRD OF GLOBAL GROWTH IN 2023

'Lucky' for The City of London to be the banker of the Renminbi, eh? 

Lucky? Pffft! All engineered!! And enabled by Brexit.

Here's what the chief of the IMF Kristalina Georgieva said yesterday about the global economy for 2023.

From : Remarks by Managing Director Kristalina Georgieva at the 2023 China Development Forum

Fortunately, the news on the world economy is not all bad. We can see some ‘green shoots’, including in China.

Here the economy is seeing a strong rebound, and the IMF’s January forecast puts GDP growth at 5.2 percent this year—a sizeable increase of more than 2 percentage points from the 2022 rate. Driving this growth is the anticipated rebound of private consumption as the economy has reopened and activity has normalized.

This matters for China, and it matters for the world. The robust rebound means China is set to account for around one third of global growth in 2023—giving a welcome lift to the world economy. And beyond the direct contribution to global growth, our analysis shows that a 1 percentage point increase in GDP growth in China leads to 0.3 percentage point increase in growth in other Asian economies, on average—a welcome boost.

With such a solid recovery, China can now build on positive momentum and—through comprehensive policies—stay on the growth path towards convergence with advanced economies.

As the Chinese saying goes: “The whole year's work depends on a good start in spring.