The International Monetary Fund (IMF) has revised China's 2025 economic growth projection upward to 5.0%, citing remarkable resilience and effective policy measures. IMF Managing Director Kristalina Georgieva announced the 0.2 percentage point increase during a Wednesday press conference in Beijing, signaling cautious optimism about the world's second-largest economy.
This adjustment reflects China's successful macroeconomic stimulus efforts and favorable export conditions, including lower-than-anticipated tariffs on Chinese goods. The IMF also raised its 2026 growth forecast to 4.5%, a 0.3 percentage point improvement from previous estimates.
While acknowledging progress, the IMF noted persistent challenges including prolonged property market adjustments, subdued domestic consumption, and deflationary pressures. These factors continue to test policymakers as they implement China's 15th Five-Year Plan recommendations, which prioritize consumption-driven growth and a strategic shift toward service-oriented economic development.
Georgieva emphasized: "China is taking crucial steps to rebalance its economy. The focus on quality growth through service sector expansion and technological innovation aligns with global economic trends." Analysts suggest this endorsement could bolster investor confidence in Asian markets as 2025 approaches.
