Beijing (PingWest)—Beijing (PingWest)-The International Monetary Fund (IMF) predicted on Tuesday that China's economy will grow by 8.4% this year, 0.3 percentage points stronger than the January forecast. China's growth to moderate to 5.6% in 2022, said the institution.
The US is projected to return to end-of-2019 activity levels in the first half of 2021 and expected to register a 6.4% growth rate for the year, according to the IMF forecast.
Kristalina Georgieva, Managing Director of the IMF, said last week that the US and China are the two engines driving the "multi-speed recovery" from the pandemic crisis, well ahead of their pre-crisis GDP levels by the end of 2021.
“Even with high uncertainty about the path of the pandemic, a way out of this health and economic crisis is increasingly visible,” IMF chief economist Gita Gopinath said in the latest World Economic Outlook report.
“Nonetheless, the outlook presents daunting challenges related to divergences in the speed of recovery both across and within countries and the potential for persistent economic damage from the crisis,” Gopinath added.
The organization expects the world economy to grow by 6% in 2021, up from its 5.5% forecast in January. Looking further ahead, global GDP for 2022 is seen increasing by 4.4%, higher than an earlier estimate of 4.2%.