IMF lowered growth forecast for China in 2019 to 6.2% (down from 6.3%). For 2020, growth forecast was cut to 6.0% (down from 6.1%). The IMF’s First Deputy Managing Director, David Lipton, noted that the economy stabilized in early 2019 reflecting a wide range of policy support. However, “renewed trade tensions” is a “significant course of uncertainty” that weighs on sentiment.
However, IMF noted that “policy stimulus announced so far is sufficient to stabilize growth in 2019/20 despite the recent US tariff hike. ” And “no additional policy easing is needed” for the moment, provided there are no further increases in tariffs or a significant slowdown in growth. However, if trade tensions escalate further, “some additional policy easing would be warranted.
