IMF Urges Bold Reforms: China's Path to Sustainable Growth

The International Monetary Fund has urged China to accelerate structural reforms to shift towards a consumption-led economy while decreasing reliance on export-driven growth. IMF Managing Director Kristalina Georgieva emphasized the need for fiscal and monetary adjustments, improved social welfare, and resolution of China's ongoing property crisis.

The International Monetary Fund (IMF) has called on China to make decisive reforms to pivot the economy towards internal consumption while reducing dependence on export-driven growth. The call was made as the IMF concluded its regular review of China's $19 trillion economy.

IMF Managing Director Kristalina Georgieva stressed the urgency of adopting a comprehensive macroeconomic policy package that includes fiscal stimulus and monetary easing. Additionally, addressing local government debt, the longstanding property crisis, and enhancing social welfare will be crucial to boosting consumption.

China's trade practices have drawn international attention, especially as it posts a record $1 trillion trade surplus. Georgieva highlighted the importance of supporting private firms and reducing industrial policy reliance, advocating for a market-driven approach to stimulate growth and fiscal savings.