(Yicai) July 17 -- The International Monetary Fund has raised its prediction for China's gross domestic product growth in 2024 to 5 percent, due to the strong rebound in consumption and exports in the first quarter, according to its latest World Economic Outlook report.

The IMF has lifted its forecast by 0.4 percentage point from the April World Economic Outlook, according to the updated report released yesterday. The Washington D.C.-based organization has also upped its expectations for 2025 by 0.4 percentage point to 4.5 percent.

It has kept its forecast for global economic growth this year unchanged at 3.2 percent, but has raised next year’s forecast by 0.1 percentage point to 3.3 percent, the report said. It has also increased its prediction for economic growth in emerging markets and developing countries by 0.1 percentage point to 4.3 percent for both this year and next year.

“Global activity and world trade firmed up at the turn of the year, with trade spurred by strong exports from Asia, particularly in the technology sector,” the IMF said. “However, some near-term risks have gained prominence, such as upside risks to inflation that stem from a lack of progress on services disinflation and price pressures emanating from renewed trade or geopolitical tensions.”

Last month the World Bank also raised its forecast for China’s economic growth by 0.3 percentage point to 4.8 percent, following the better-than-expected key economic data in the first quarter. The World Bank also noted that the Chinese government's real estate support policies and proactive fiscal policies are expected to achieve good results.

China's gross domestic product in the first half expanded 5 percent from the same period last year, in line with the annual growth target set by the government. In the first quarter, GDP grew by 5.3 percent year-on-year and in the second quarter by 4.7 percent, according to data released by the National Bureau of Statistics on July 15.

Editors: Dou Shicong, Kim Taylor