The IMF forecasts growth for the US and Japan amid policy uncertainties, while China’s economic strategy helps meet its 5% growth target. Risks include inflation, geopolitical tensions, and corporate debt issues.
Economic Forecasts Amid Uncertainties
The IMF projects economic growth for the US and Japan despite ongoing policy uncertainties. China successfully achieved its 5% growth target for 2024. However, the US continues to face risks from inflation, particularly influenced by Trump’s policies. These policies may offer short-term benefits but raise concerns for potential slowdown in the future.
Japan’s Fragile Recovery
Japan’s economic recovery is constrained by weak manufacturing and export performance, even as service sectors receive support. Despite rising inflation and an influx of tourists, the outlook remains fragile due to competition in key industries. The IMF estimates Japan’s growth at 1.1% in 2025, contingent on factors like improved business confidence and stimulus measures.
China’s Growth and Future Challenges
China’s economy grew by 5% in 2024, driven by government initiatives and exports. However, consumption hesitates, reflecting weaknesses. Potential trade war escalations could dampen future export performance. The government plans targeted stimulus to bolster domestic consumption aiming for gradual recovery. Yet, structural challenges may slow growth to 4.8% by 2025.
Source : IMF Upgrades Economic Forecasts for US and Japan; China Hits 5% Growth Target for 2024