Renowned investor expects China to be stronger than most economies in 2023

 

(ECNS) -- Renowned investor and financial commentator Jim Rogers said on Wednesday that he expects China will be stronger than most economies in 2023.

Rogers's remarks came after the International Monetary Fund (IMF) on Tuesday released World Economic Outlook, in which it predicts the global economy will grow by 2.8 percent in 2023, and the Chinese economy, by 5.2 percent.

In the IMF's latest forecast, global growth will bottom out at 2.8 percent this year before rising modestly to 3.0 percent in 2024.

For advanced economies, growth is projected to decline by half in 2023 to 1.3 percent, before rising to 1.4 percent in 2024.

The U.S. and Euro areas are expected to grow by 1.6 percent and 0.8 percent respectively this year and by 1.1 percent and 1.4 percent respectively next year.

The growth of the emerging markets and developing economies is expected to be 3.9 percent in 2023 and to rise to 4.2 percent in 2024.

About 90 percent of advanced economies are projected to see a decline in growth in 2023. While for emerging markets and developing economies, economic prospects are on average stronger than for advanced economies.

The IMF believes that the global economy has an uncertain future, amid high inflation, the ongoing Ukraine crisis, and the impact of the COVID-19 pandemic.

Looking at the medium term, the global economy may not be able to recover to the growth rate prior to the pandemic. It is expected that the global economic growth rate will remain at around 3% percent in the next five years, which is lower than the average level of 3.8 percent over the past 20 years.

The IMF points out that central banks should tighten monetary policies to contain inflationary pressure, while standing ready to take appropriate actions to mitigate financial

sector risks as needed. Governments should implement an overall tightening policy, while providing targeted support to the groups most affected by the cost-of-living crisis.

Given the size of the Chinese economy, that would be a key contributor to global growth in the coming year, said Pierre-Olivier Gourinchas, director of the Research Department of the IMF at a press briefing on Tuesday.

It is one of the great pieces of news for 2023 that China's economy is seeing a rapid reopening with a strong rebound, Gourinchas said.

"I would expect most countries to have economic problems next year and in the few years after," Rogers said.