IMF Lifts China's Growth Outlook

(RTTNews) - The International Monetary Fund raised China's growth outlook citing policy stimulus measures and reduced US-China bilateral tariffs.

The IMF raised economic growth for this year to 5 percent from 4.8 percent and that for next year to 4.5 percent from 4.2 percent.

The lender expects growth to moderate in the medium-term due to slowing productivity growth, an aging population, elevated debt levels, and decreasing returns to investment.

Concluding the IMF's 2025 Article IV Consultation mission to China, the IMF team also urged China to tackle imbalances through more macroeconomic policies and complementary reforms to reduce huge household savings.

In order to support China's transition to a consumption-led growth model, away from investment and export-oriented economy, need more expansionary macroeconomic policies and complementary reforms, the IMF said.

The IMF team forecasts headline inflation to rise modestly from an average of zero percent in 2025 to 0.8 percent in 2026.