Recovery in China depends on 'calibrating' COVID strategy: IMF chief

By Ovunc Kutlu

ISTANBUL (AA) - Economic recovery in China depends on Beijing "calibrating" its COVID-19 strategy, IMF Managing Director Kristalina Georgieva said Friday.

The IMF chief said economic activity in China is held back by the ongoing coronavirus lockdowns in the country and challenges in its real estate market.

She said "further calibrating" the COVID-19 strategy to mitigate its economic impact will be critical for China to sustain recovery in the world's second-biggest economy, during her speech via video at the International Financial Forum in Guangzhou.

Georgieva also pointed to a slowdown in the Chinese economy and high inflation around the world as risks against the economic outlook in Asia.
Beijing's strict measures in recent coronavirus lockdowns have been adding to the slowdown in Asia, as well as the global economy, while it is further disrupting supply chains both on the continent and across the world.

Georgieva last month called on central banks in advanced and emerging market economies, stressing that their biggest and immediate challenge is to bring inflation down.

The IMF in October lowered its global economic growth forecast for 2023 by 0.2 percentage points to 2.7% and warned that there is a 25% probability of global economic growth falling below 2% next year.