IMF: “The Chinese economy continues to recover, but inertia slows down”

The International Monetary Fund (IMF) warned that, although the Chinese economy continues to recover after the impact of the COVID-19 pandemic, the “inertia is slowing down”.

After a round of virtual consultations with the Chinese authorities, the first deputy managing director of the institution, Geoffrey Okamoto, attributed this slowdown to the “quick withdrawal”Of the support policies and the problems that the anti-COVID measures of the Chinese Government pose to the recovery of consumption.

China has made the policy of “zero tolerance” against him COVID-19 one of its prides, and it responds with massive tests and even confinements of entire cities to outbreaks, no matter how small.

Okamoto He also cited the impact of anti-leverage measures in the real estate sector, the shortage of energy that resulted in rationing policies in important industrial centers of the country since mid-September, or the “political uncertainty” generated by the campaign to regulate the technology sector.

All of this translates into a “accumulation”Of risks to the Chinese economy, for which the IMF projects a growth rate of 8% in 2020 and 5.6% in 2022.

Longer term, the IMF sees potential problems in factors such as falling productivity growth, “increasing decoupling pressures”With other economic powers such as the United States or the reduction of the workforce due to the aging of the population.

For the authorities to achieve their objectives of achieving a “high quality growth”, Okamoto recommended fiscal policies that reinforce social protection and promote investment “verde”Instead of, as has been the case for years, in infrastructures.

Likewise, the representative of the institution assured that stability should be guaranteed by facing “in a clear and coordinated way“Financial risks, and asked to deepen measures”key”Such as the opening of national markets, the reform of state-owned companies or the guarantee that private companies can compete on equal terms.

According to official data, the GDP of China slowed down in the third quarter, growing by 4.9% after the 18.3% and 7.9% gains recorded in the first two quarters of 2021.