China, which is seeing a strong rebound in economy, is set to account for around a third of global growth in 2023, the head of the International Monetary Fund (IMF) said in a speech delivered to the China Development Forum 2023 on Sunday.
Kristalina Georgieva, speaking on the second day of the annual forum held in Beijing, referred to the solid economic recovery in China as green shoots in the world economy, which is currently afflicted by scarring from the pandemic, geo-economic fragmentation and financial stability risks.
Georgieva pointed out that China's recovery gives a welcome lift to the world economy, saying that according to IMF analysis, a 1-percentage-point increase in China's GDP growth leads to a 0.3-percentage-point increase in growth in other Asian economies on average.
In January, the IMF upgraded its growth projection for China in 2023 to 5.2 percent, up from its October forecast of 4.4 percent.
Driving this growth is the anticipated rebound of private consumption as the economy has reopened and activity has normalized, Georgieva noted.
Georgieva also laid out several policy suggestions for China's growth down the road in her speech. Emphasizing on rebalancing the economy away from investment and more towards consumption-driven growth and the importance of green growth, she said this will help China achieve growth that is both higher quality and more inclusive.
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, she said.