#DavosBrainstorm2024: Gita Gopinath On The Biggest Hurdles China’s Economy Is Facing

Rahul Kanwal, Executive Director, Business Today discusses China and its impact of its flagging economy with Gita Gopinath, First Deputy Managing Director, IMF on the sidelines of World Economic Forum meet at Davos. Gopinath highlights two major hurdles - the downward trend in the realty sector, which is strangling the entire economic engine, and the financial struggles of local governments due to insufficient funds. Additionally, she pointed out the aging population and the need for more market-based reforms in China. On the question whether China will overtake the US economy, she noted that China's per-capita income is significantly lower than that of the US, indicating a substantial gap between the two economies. Here’s an excerpt from that exclusive conversation.