IMF predicts China to surpass US as global growth driver

According to the International Monetary Fund (IMF), China is set to become the largest driver of global economic growth in the next five years. The IMF predicts that China will contribute 22.6% of total world growth, while the US will contribute 11.3%. India follows with a 12.9% contribution. Half of global growth is expected to be concentrated in China, the US, India, and Indonesia. Additionally, the IMF anticipates growth contributions from Brazil, Russia, India, and China to outpace Group of Seven nations.

However, the IMF report highlights that recent bank turmoil and sticky inflation have heightened recession risks. March brought the collapse of Silicon Valley Bank and Signature, in addition to trouble with Silvergate, Credit Suisse, and other names. The IMF warns that “risks to the outlook are squarely to the downside,” and “much uncertainty clouds the short- and medium-term outlook as the global economy adjusts to the shocks of 2020–22 and the recent financial sector turmoil. Recession concerns have gained prominence, while worries about stubbornly high inflation persist.”

Overall, the IMF expects global growth to expand about 3% over the next five years in a higher-interest-rate environment. It is the weakest outlook in over 30 years. Three-quarters of global growth will stem from 20 countries, and over 50% will come from just China, India, the US, and Indonesia. The IMF's report highlights that half of global growth will be concentrated in China, the US, India, and Indonesia.

As an unbiased, unopinionated, and unemotional centrist journalist, it is important to present the facts accurately and without bias. The IMF report simply outlines the predictions for global economic growth over the next five years, highlighting China's expected contribution and warning of heightened recession risks. It is important to consider these predictions while acknowledging the potential for uncertainty and risk in the future.


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