Chinese economic news: China’s economy is strong but slowing
China’s economic growth rate is expected to slow this year as the country’s economy faces its toughest challenges in decades, but it’s expected to return to a growth rate of around 6 percent by 2023, according to a new report by the International Monetary Fund.
The IMF forecasts that China’s gross domestic product will grow at a rate of 6.6 percent in 2023 and 8.2 percent in 2024, the first times China’s growth rate has exceeded 8 percent since the early 1990s.
The report says China’s long-term economic prospects are improving but are not without challenges, particularly with respect to the environment and infrastructure.
For example, the report said the country will continue to face a shortage of steel, cement, and other materials that will weigh on the economy.
The report also said China will continue struggling with the fallout from the devastating 2011 earthquake and tsunami in the country.
While China has seen its growth slow for years, the country has made significant gains in recent years and has managed to reduce its reliance on imported goods.
But the IMF warned that the country remains far from fully sustainable in its current economic climate.
“The economic outlook for 2020 is bleak, with China’s real GDP projected to decline by 2.5 percent in 2020, as well as by 2 percent in 2021 and by 1.6 percentage points in 2022,” the IMF said.
“This deterioration is likely to be even more pronounced in 2030, with annual GDP declines of 6 percent and 8 percent, respectively, by 2020 and 2030.”
Despite these economic challenges, China remains the world’s largest and most dynamic economy,” the report concluded.
The Chinese government has been working to rein in the nation’s rapid economic growth, but its efforts have so far failed.