Beijing, 27 March 2023 (TDI): At the 2023 China Development Forum, Managing Director of International Monetary Fund (IMF), Kristalina Georgieva delivered her speech in which she highlighted about the transformation of China in terms of economy.

In the comparison with Beijing for the world economy, she emphasized that spring is yet to come.

Additionally, she expressed that 2023 is going to be another challenging year, with global growth slowing to below 3 percent as scarring from the pandemic, the war in Ukraine, and monetary tightening weigh on economic activity.

Even with a better outlook for 2024, global growth will remain well below its historic average of 3.8 percent.

Further, she enlightened that the uncertainties are exceptionally high, including because of risks of geo-economic fragmentation which could mean a world split into rival economic blocs—a ‘dangerous division’ that would leave everyone poorer and less secure.

Together, these factors mean that the outlook for the global economy over the medium term is likely to remain weak.

Policymakers have acted decisively in response to financial stability risks, and advanced economy central banks have enhanced the provision of US dollar liquidity.

These actions have eased market stress to some extent, but uncertainty is high which underscores the need for vigilance.

This matters for China, and it matters for the world. The robust rebound means China is set to account for around one-third of global growth in 2023—giving a welcome lift to the world economy.

Moreover, beyond the direct contribution to global growth, our analysis shows that a 1 percentage point increase in GDP growth in China leads to a 0.3 percentage point increase in growth in other Asian economies, on average—a welcome boost.

Also, to provide a detailed assessment in our forthcoming World Economic Outlook and Global Financial Stability Report, which will be published in the coming weeks.