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Increased exports and commercial investment are supporting Chinese production, but the asset market is facing very demanding situations and trade policies may hurt other countries.
By Keith Bradsher
Reporting from Beijing
The International Monetary Fund raised its forecasts for China’s economic growth on Wednesday, while questioning the extent of the Chinese government’s aid to export-oriented industries.
The fund estimates that China will grow by 5 percent this year and 4. 5 percent in 2025, which is 0. 4 percent more annual issuance than the fund forecast just six weeks ago.
China’s gross domestic output rose 5. 2% last year as the economy rebounded after nearly three years of strict pandemic policies that stifled growth. Many economists, adding at the IMF, had predicted that China would be held back this year by a sharp contraction in the asset market and a slowdown in client spending.
Still, while asset costs have continued to fall and retail sales have grown slowly, China has risen in the first three months of this year. Its economy grew at an annual rate of about 6. 6% due to the meteoric rise in exports and large investments. in factories.
The Chinese government is taking steps to deal with the property crisis, but it faces enormous challenges. Years of overbuilding resulted in the creation of 4 million new unsold apartments and, by a conservative estimate, as many as 10 million developers sold still did. all the construction.
Many vacant investment apartment owners are also facing years of high loan payments, but the price of their apartments will appreciate significantly.
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