IMF Urges China to Propel Economic Reform Amid Global Trade Tensions

The IMF is urging China to accelerate its economic reforms, emphasizing a shift to a consumption-led model. IMF Managing Director Kristalina Georgieva highlights the need for structural changes, including property crisis resolution and reducing dependency on export-led growth, to alleviate global trade tensions.

The International Monetary Fund (IMF) has called on China to expedite its economic reform process. In a press conference on Wednesday, IMF Managing Director Kristalina Georgieva stressed the need for China to transition to a consumption-led economy, moving away from reliance on debt-driven exports, to mitigate rising global trade tensions.

Georgieva outlined the need for a comprehensive macroeconomic policy package, including fiscal stimulus, monetary easing, and targeted measures to tackle local government debt and the ongoing property crisis. She emphasized that addressing these issues could bolster consumption and GDP growth while shaping China's economic future.

In response to mounting trade pressures, the IMF suggested a focus on flexible exchange rates and a reduction in industrial policy support. This approach could lead to fiscal savings, enabling increased social spending and resolving real estate issues, as China works towards sustainable economic development.

(With inputs from agencies.)