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The International Monetary Fund urged the government of China to move toward a “recalibration” its zero-COVID policies under which officials have shuttered entire cities for the past two years.
After representatives from the international financial institution met virtually with Chinese policymakers over the span of two weeks, IMF First Deputy Managing Director Gita Gopinath said that the current approach to slowing the spread of the virus has harmed the nation’s economy.
“Under the zero-COVID strategy, China weathered the initial impact of the pandemic well, allowing the economy to recover swiftly from the early-2020 lockdowns and to expand the global supply of medical goods and durable goods significantly at a critical time for the global economy,” she said in a statement. “However, China’s growth has since slowed and remains under pressure amid recurring COVID outbreaks, deep challenges in the property sector, and slowing global demand.”
Gopinath added that the country should move towards a “recalibration” of its zero-COVID policy, and transition away from it in the second half of 2023.
The Chinese economy is expected to grow 3.2% this year and 4.4% for the next two years. The nation averaged nearly 10% annual output growth over the past four decades since free market reforms were implemented, according to data from the World Bank.
