Reuters reported that China could see a sharp recovery in economic growth from the second quarter onwards based on current infection trends after the dismantling of most COVID-19 restrictions, IMF Deputy Managing Director Gita Gopinath said on Wednesday.

Key comments

"We expect growth in China to come back, to rebound," Gopinath told Reuters in an interview at the World Economic Forum in Davos.

"Looking at the infection trends, and if those persist, we could see a very quick recovery starting from after the first quarter of this year," she said of a current surge in infections seen as an "exit wave" linked to the economic reopening.

Gopinath said that a growth rate "in the 4%-plus ballpark" would likely mean that any global inflationary pressures would be counter-balanced by the slowdown in demand elsewhere.

"But if growth in China comes in much more strongly, which is a possibility, then we could see another spike in oil prices or energy prices," she said.