IMF: China’s growth slowing on weaker private investment

A spokesperson for the International Monetary Fund (IMF) said on Thursday that slowing exports and weaker private investment cause China’s growth momentum to slow, per Reuters.

There doesn’t appear to be any discernible effect of these remarks on risk mood. As of writing, the S&P 500 Index was up 0.6% on the day.

“The overall picture of growth in China is one of slowing economy, consistent with the IMF forecasts in April,” the spokesperson added. “Subdued inflation in China is due to weaker demand, slack in the economy after strong reopening in the first quarter.”

Due to a low base, China’s economy grew 7.3% from a year earlier in the second quarter, but momentum is already swiftly fading, according to a Reuters poll, heightening predictions that Beijing would soon need to introduce additional stimulus measures.

The economic suffering brought on by COVID-19 lockdowns last year will significantly skew the reading, although the anticipated expansion would be the greatest since the second quarter of 2021.