IMF remarks on the Chinese economy after a consultation
- China's fiscal policy should temporarily shift to neutral stance
- Monetary policy should be accommodative
- The recovery is well advanced but is unbalanced and momentum slowing
- Downside risks are accumulating for the Chinese economy
- China's regulatory tightening targeting has increased policy uncertainty
- Slowdown is attributed to rapid withdrawal of policy support, lagging consumption recovery amid COVID-19 outbreaks and lockdown measures
Those are all fair points involving the economic situation in China but again, it must be pointed out that the priorities of the country have largely shifted.
The main focus now is on 'common prosperity' so one can expect a less of a "babysitter" approach when it comes to how Chinese authorities will handle the economy.
It's not to say that they are going to abandon their principles over the past two decades but there will certainly be less hand-holding at least.
