IMF Chief Praises Productive Talks with China: Collaboration Key to Sustainable Economic Future

The head of the International Monetary Fund (IMF), Kristalina Georgieva, has praised the "productive and substantive" talks she had with top officials in China during her visit to the country. The IMF had previously warned about the slowdown of the global economic recovery from the pandemic. While upgrading its outlook for world growth this year, the IMF forecasted a 5.2 percent expansion in China's economy in 2023, slightly higher than Beijing's target of around 5 percent. However, China's growth has faced challenges in recent months, including weak consumer demand, high youth unemployment, and a crisis in the property sector.

These issues have undermined the post-COVID rebound the country was experiencing. During the discussions, Georgieva and the Chinese leadership, including Premier Li Qiang, Vice Premier He Lifeng, central bank Governor Pan Gongsheng, and Finance Minister Liu Kun, addressed the status of the world economy and the developments in China of great importance to both the nation and the world. Georgieva expressed her appreciation for China's recognition of the IMF's role at the center of the global financial safety net. She emphasized the need for the IMF to have the financial strength to assist countries vulnerable to the impact of COVID-19 and other shocks.

In a world where many nations face economic challenges, it is crucial for institutions like the IMF to be adequately equipped to provide support. Georgieva also mentioned her meetings with the mayor of Shanghai and Dilma Rousseff, the former president of Brazil who now heads the New Development Bank, an institution established by the BRICS emerging economies. It is worth noting that Georgieva previously urged China's policymakers to focus on raising productivity and rebalancing the economy towards consumption-driven growth. As China continues to navigate its economic recovery, these discussions and collaborations with the IMF and other institutions are crucial in ensuring a sustainable and resilient economic future.