"China's growth slowed significantly" in 2022, remaining "under pressure" due to the COVID-19 pandemic, the real estate crisis and the decelerating overall global demand, the International Monetary Fund reported on Friday.
The IMF called for a "more accommodative fiscal policy stance" by Chinese authorities and "greater support for households" as previous measures were directed primarily at "enterprises and increasingly less effective traditional infrastructure investment."
China's growth potential over the medium term would improve with renewed efforts to introduce more "pro-growth reforms" that could also serve as "the most effective response to fragmentation risks," the IMF noted.
