Raised forecasts reflect positive prospects for China’s economy

THE INTERNATIONAL MONETARY FUND raised its forecast for China’s economic growth this year to 6.8 percent on Wednesday. This is the fourth time this year the IMF has raised its forecast for China. Late last month, the Organization for Economic Cooperation and Development also adjusted upwards its forecast for China’s growth this year, raising it from 6.6 percent to 6.8 percent. Beijing News comments:

These two organizations’ adjustments regarding their forecasts for China’s economic growth show their positivity toward the prospects for the world’s second-largest economy.

Since 2008, China has contributed more than 30 percent on average to the world’s economic growth each year. It is remarkable that China has kept such high annual growth since it launched reform and opening-up in the late 1970s, and that it has been able to lift more than 800 million people out of poverty.

China’s opening-up has also promoted its integration with the world, and in doing so given it a larger say in addressing global challenges.

It is noteworthy that China’s reforms and economic restructuring over the past five years have laid a solid foundation for resolving the governance, environmental and social problems at home.

The development of China’s financial sector has also made it a major player in trade and investment. The renminbi is now included in the IMF’s Special Drawing Rights basket of currencies, an important step toward a more stable, fairer and more representative multi-currency financial system. The internationalization of the renminbi is expected to gather speed in the foreseeable future.

It is thus no wonder that the IMF and OECD have raised their expectations for China’s economic performance.