IMF lifts China growth forecast but warns on industrial policy

The International Monetary Fund (IMF) has raised its 2023 growth forecast for China to 5%, in line with Beijing’s target, citing recent policy measures and better-than-expected first quarter performance. However, the IMF warned that China’s industrial policy risks misallocation of resources and could harm trade. It urged scaling back such policies, removing trade restrictions, and implementing structural reforms to rebalance the economy towards consumption and address imbalances for sustainable long-term growth. Photo: AFP