IMF Managing Dir Georgieva: US is the only large economy that has recovered to pre-pandemic trends; Downsides are significant given that most large economies growth forecasts are still below pre-pandemic trends
- Without structural reforms, China medium term growth will fall below 4%; Urge China to work on boosting domestic consumption amid aging population and declining productivity
- Our advice to China is use your policy space in a way that helps you shift your growth model towards more domestic consumption, because the traditional way of infrastructure, pumping in more money, in this current environment is not going to be productive.
- Must carefully monitor outflows of investment from China
- Urge China to address weakness in its real estate sector and the build up of local govt debt