IMF lifts China's growth outlook but urges stronger reforms

The International Monetary Fund (IMF) has revised its economic outlook for China for this year and next and is now forecasting economic growth of 5.0% for 2025 and 4.5% in 2026 – an increase of 0.2 and 0.3 percentage points from the prediction in its October World Economic Outlook, according to a press release published on December 10. The upward revision followed a recent visit to China by a delegation from the fund, Mysteel Global noted.

Explaining its upward revision for growth, the IMF cited stronger-than-expected macroeconomic policy support from the central government and lower tariff increases on Chinese exports. However, important structural imbalances persist, the release warned. Domestic demand remains subdued and deflationary pressures linger, while China's low inflation relative to its trading partners has