Moscow/ Washington: International Monetary Fund (IMF) chief Kristalina Georgieva has warned that prolonged slowdown in the Chinese economy will adversely impact on the global economy. She said that China has a chance to revive its economy; however, it will be important to see what measures are taken. A few days back, the IMF warned of global economy slowing down.

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A few days ago, China reported their 1st quarter economic report. The lockdown imposed in China to curb the coronavirus outbreak has dented the economic growth. China’s economy grew by 4.8% in 1st quarter, as against a target of 5.5% set by the Chinese regime. This is a significant drop which has resulted in negative sentiments seen across plummeting stock markets in Asia and the US.

For the past few months, there has been an outbreak of coronavirus in China. Zero Covid policy of China has seen some harsh measures, which is beginning to hit the economy. With the Russia- Ukraine war, disruption in supply chain and fall in domestic consumption in China have started to affect the global economy. Supply chain disruption has resulted in shortage of material, resulting in inflation. The US and Europe have forecasted a slowdown in the economy. All these factors will influence growth of the global economy.

A warning issued by the IMF chief also confirm the growing concern on global economy. At the annual Boao Forum for Asia, Georgieva advised China to implement policies and decisions mainly focused on boosting the demand and real estate to revive its economy. According to a report released by the IMF, China’s economic growth will accelerate by 4.4 percent. Along with the IMF, international financial institutions such as Bank of America and UBS have also expressed concern over China’s economic growth. The financial institutions have warned that the 5.5% target set by the Chinese regime will not be met.

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