“We have been pleased to see this rebound of China not only for China, but also because of China’s role in the world economy,” Georgieva told a press briefing on the IMF’s Global Policy Agenda.
“China this year is going to contribute about one third of global growth. We calculated that 1 percent more growth in China translates into 0.3 percent more growth for the economies that are connected to China,” she said.
The IMF projected the Chinese economy will grow “quite strongly” by 5.2 percent this year, which is higher than China’s domestic projection of 5 percent, said Georgieva.
“This being said, there are significant challenges … Still the issue of how to handle real estate, actions are being taken. And also how to redirect the Chinese economy more towards domestic consumption,” said Georgieva.
The IMF chief recalled her recent China trip as “very very fruitful.”
“It gave me an opportunity to meet with Premier Li Qiang as well as other leaders and discuss the prospects for the world economy, for China’s economy as well as the importance China has in terms of supporting low-income countries,” she said.
“What impressed me was the premier’s very clear message on China continuing to reopen and in pursuit of reforms. That can strengthen the prospects for China’s growth. I have seen how different it is when the economy reopens,” she added.