China expected to boost global growth but uncertainties remain: IMF

China’s economy is expected to contribute a quarter of global growth this year, the International Monetary Fund said Friday, although uncertainty around Covid-19 and the property sector could stifle momentum.

After almost three years of stringent health restrictions, Beijing in December abruptly ended the zero-Covid policy that had battered the economy and provoked widespread protests.

The Asian giant posted growth of just three percent in 2022, hammered by stringent lockdowns and a deepening crisis in the key property sector.

“China’s economy is set to rebound this year as mobility and activity pick up after the lifting of pandemic restrictions, providing a boost to the global economy,” the IMF said in an annual assessment of the Chinese economy.

“That’s good news for China and the world as the Chinese economy is now expected to contribute a quarter of global growth this year,” it said.

The IMF on Monday revised its 2023 growth forecast for China up to 5.2 per cent, after upgrading its global growth forecast partially based on the country’s reopening.