The IMF has upgraded its 2019 growth forecast for the Chinese economy over improving trade tensions between US and China. IMF’s latest World Economic Outlook Report projects China’s growth could touch 6.3% this year, up from the previous estimate of 6.2%.

The world’s second biggest economy had grown by 6.6% in 2018, a setback after achieving record growth rates for the past 28 years. IMF’s economic counselor, Gita Gopinath, remarks in the report that China’s fiscal and monetary stimulus efforts have countered the negative impact of the tariffs imposed by the US. In addition, she states that as trade tensions between US and China ease and a trade deal comes into place, things could start looking up for the Chinese economy.

However, it’s not a completely rosy picture for China in the report – IMF has downgraded economic growth projections for 2020 from 6.2% to 6.1%. This has been done taking into consideration other downside risks, including a possibility of tensions related to trade flaring up again, and possible disruptions in global supply chains of industries.