IMF raises China's 2025 economic growth forecast to 5.0%

The IMF has revised up its forecast of China's economic growth to 5 percent in 2025, thanks to the remarkable resilience it has shown, said Kristalina Georgieva, the IMF's managing director, at a press conference in Beijing on Wednesday.

The improved outlook, 0.2 percentage point higher than the previous estimate, was driven by welcome macroeconomic policy stimulus measures and lower-than-expected tariffs on China's exports, according to IMF.

It also raised its forecast of GDP growth to 4.5 percent in 2026, up 0.3 percentage points.

However imbalances in the economy still persists, including the prolonged property sector adjustment, weak domestic demand and deflationary pressures, the IMF said in a press release.

Speaking about China's 15th Five-Year Plan recommendations, she emphasized that China has prioritized consumption as a driver of growth and recognized the importance of reorienting the economy from goods to services. China is taking steps in the right direction, she stated.