IMF Holds China 2026 Growth Outlook, Flags Property Risks

EthereumCraftsman · 2026-02-19T06:20:18+00:00

The IMF maintained China's 2026 growth forecast at 4.5% but warned of risks from weak domestic demand and a slowing global economy. It noted a 5% GDP growth in 2025, highlighting concerns over the property sector and trade tensions, and urged policy adjustments.

EthereumCraftsman

2026-02-19 06:20:18

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The International Monetary Fund kept its 2026 growth forecast for China unchanged at 4.5%, while warning that weak domestic demand and a slowing global economy pose downside risks. In its annual 2025 review released on Wednesday, the global lender said China’s economy expanded 5% in 2025, meeting Beijing’s official target, though the GDP deflator continued to decline, signaling persistent price pressures. The IMF described a “deeper-than-expected” downturn in the property sector as the main domestic risk, while renewed trade tensions represent the key external threat. It also called on policymakers to scale back industry support by cutting subsidies from 4% of GDP to 2%, restructure the debt of unsustainable local government financing vehicles, and take steps to curb future debt accumulation.

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