The International Monetary Fund said China’s economy is on track to grow faster than previously expected in 2025 and 2026, reports Caixin. But it warned that the country must confront structural challenges ranging from weak consumption to a protracted property slump.
The IMF delivered the assessment at a press briefing in Beijing after completing its 2025 Article IV consultation mission on Wednesday. Staff met senior officials from the central government, the People’s Bank of China, and multiple ministries, as well as private-sector and academic representatives.
The fund now projects China’s economy will expand 5% in 2025 and 4.5% in 2026, upgrades of 0.2 and 0.3 percentage points from its October World Economic Outlook. The changes reflect stronger exports, lower-than-expected tariffs and what it called “welcome fiscal stimulus.” Inflation is forecast to rise from 0% in 2025 to 0.8% in 2026, remaining subdued relative to global trends.