The International Monetary Fund has upgraded China’s economic growth forecast to 5%, urging consumer-friendly reforms for sustained, high-quality growth. The report cites recent support for the property sector as a key factor in the upgrade.
However, the IMF emphasizes the need for stronger social safety nets and increased incomes to boost consumer spending. It also advises Beijing to reduce subsidies that favor manufacturing over other industries like services.
While China aims for around 5% annual growth, the IMF warns of risks and predicts a 4.5% growth rate in 2025. The report praises China’s focus on “high quality” growth but suggests a more balanced policy approach.
Looking ahead, the IMF predicts a slowdown in China’s growth to 3.3% by 2029, influenced by an aging population and challenges in productivity and housing. The report also raises concerns about China’s industrial policies impacting global trade.
Amidst tensions with the U.S. over trade practices, China defends its policies while criticizing unfair restrictions on technology exports. The IMF calls for collaborative solutions to navigate economic headwinds and foster sustainable growth.