Mainland to grow at 6.6% in 2018, says IMF

Updated 2018-05-10 11:12:02 China Daily

The International Monetary Fund raised its forecast for economic growth on the Chinese mainland in 2018 to 6.6 percent from 6.5 percent, but warned that the simmering Sino-U.S. trade dispute would negatively affect global economic growth and investment.

"The Chinese mainland economy is transiting from an export-oriented economy to domestic consumption. Growth of the new digital economy and new service sector are quite higher," said Changyong Rhee, director of the IMF's Asia-Pacific Department at a media briefing on Wednesday. He added the IMF has seen many new growth engines for the mainland economy.

In the first quarter of this year, the mainland economy grew at a faster-than-expected 6.8 percent, well above the government's target of 6.5 percent for the full year, the National Bureau of Statistics announced last month.

According to the IMF, it expects economic growth on the mainland to moderate to 6.4 percent in 2019.

The Fund is also optimistic about the economic outlook for Asia-Pacific and anticipates the region will continue to be the most dynamic of the global economy-accounting for more than 60 percent of global growth. But risks such as geopolitical tensions and a potential trade war are still ahead. "The region remains vulnerable to a global risk-off event," the report said.

Trade has been the major engine of global economic growth, especially in the Asia-Pacific region, said Koshy Mathai, deputy division chief of the IMF's Asia-Pacific Department, and therefore, trade disputes between the Chinese mainland and the United States is a big concern for the area.

The IMF was worried about the escalation of the Sino-U.S. trade disputes, Mathai said.

He explained that in the Chinese mainland exports to the U.S., there is about 30 percent added value representing influences from other countries. So levying tariffs on mainland exports will also affect global supply chains.

"A trade war does not just affect the U.S. and the Chinese mainland given the complicated trading relationship, global value chains and global supply chains. There will not be any winners coming out of this kind of tension," Mathai said.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58October 20 2018 12:06:11

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16October 20 2018 12:06:11

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18October 20 2018 12:06:11

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords