The International Monetary Fund on Tuesday revised China’s 2024 economic growth up to 5 percent in an update to its World Economic Outlook, from the 4.6-percent forecast in April.
The revision is primarily attributed to a rebound in private consumption and strong exports in the first quarter, according to the update.
“In China, resurgent domestic consumption propelled the positive upside in the first quarter, aided by what looked to be a temporary surge in exports belatedly reconnecting with last year’s rise in global demand,” it said.
The IMF maintained its forecast for global growth in 2024 at 3.2 percent, noting that Asia’s emerging market economies remain the main engine for the global economy.
Global activity and world trade firmed up at the turn of the year, with trade spurred by strong exports from Asia, particularly in the technology sector, the WEO update noted.
“Asia’s emerging market economies remain the main engine for the global economy. Growth in India and China is revised upwards and accounts for almost half of global growth,” IMF Chief Economist Pierre-Olivier Gourinchas said in a blog.
The revision for China’s growth prediction was announced in late May by the IMF’s first deputy managing director, Gita Gopinath, during a news briefing in Beijing following the conclusion of the IMF team’s 2024 Article IV Consultation for China.