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China's economic activity rebounds in 2023: IMF

Xinhua | Updated: 2024-03-03 07:05
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BEIJING -- China's economic activity rebounded in 2023 following the post-COVID reopening with real GDP estimated to have grown broadly in line with the authorities' growth target of around 5 percent, the executive board of the International Monetary Fund (IMF) has said.

The IMF made the statement in a recent press release after concluding its annual Article IV review of the Chinese economy.

According to the statement published on the IMF website, the recovery was driven by domestic demand, particularly private consumption, and assisted by supportive macroeconomic policies, including the further relaxation of monetary policy, tax relief for firms and households, and fiscal spending on disaster relief.

The statement said that while inflation fell in 2023, largely due to decreased energy and food prices, it is expected to increase gradually to 1.3 percent in 2024 as the output gap narrows and the base effects of commodity prices recede.

Decisive policy action, including accelerated restructuring in the property sector, could boost confidence and lead to a better-than-expected rebound in private investment, the statement said.

An IMF team visited China from Oct 26 to Nov 7 to undertake the 2023 Article IV consultation.

The team held constructive discussions with senior officials from the government and the People's Bank of China, as well as private sector representatives and academics, to exchange views on China's economic prospects and risks, reform progress and challenges, and policy responses.

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