IMF revises up China's 2024 economic growth to 5% from 4.6%

ISTANBUL

The International Monetary Fund (IMF) said Wednesday it expects China's economic growth to average 5% in 2024 and 4.5% in 2025, which are upward revisions of 0.4 percentage points for both years compared to projections made in April.

The revisions made to the growth estimates are driven by strong GDP data in the first quarter of this year and recent policy measures, the IMF said in a statement after completing its Article IV mission to China.

"Core inflation is expected to rise but stay low as output remaining below potential," it said, adding: "Risks are tilted to the downside, including from greater- or longer-than-expected property sector adjustment and increasing fragmentation pressures."

The IMF said China's immediate priorities are to adopt a comprehensive policy package to facilitate the property sector adjustment, and to provide adequate macroeconomic support to boost domestic demand and mitigate downside risks.

Achieving high-quality growth will require wide ranging structural reforms, according to the financial institution.

"Key priorities include rebalancing the economy towards consumption by strengthening the social safety net, liberalizing the services sector, and scaling back distortive supply side policies that support the manufacturing sectors," it said.

China's economic growth is expected to decelerate to 3.3% by 2029, due to aging and slower productivity growth, according to the IMF.