The International Monetary Fund said on Tuesday that it expects the Chinese economy to grow by 8% in 2021 but added that the economic recovery remains unbalanced, as reported by Reuters.

Additional takeaways

"Asia's economy to expand 5.7% in 2022, up 0.4% from April forecast."

"Untimely policy normalization or misconstrued policy communications' by the US could trigger capital outflow, push up borrowing costs for Asian emerging economies."

"Risks to Asia growth tilted down on pandemic uncertainty, supply chain disruptions, potential spillovers from fed policy normalisation."

"Asia's economy to expand 6.5% in 2021, down 1.1% from April forecast."

Market reaction

This report doesn't seem to be having a noticeable impact on market mood. As of writing, the S&P Futures were up 0.5% at 4,500.