IMF Urges China to Accelerate Structural Reform Amid Global Pressures

Beijing: The International Monetary Fund on Wednesday urged China to accelerate the pace of structural reform, as global pressure mounts on the world's second-largest economy to shift to a consumption-led growth model and curb its reliance on debt-fueled investment and exports. According to Yemen News Agency, China's giant economy achieved a $1 trillion trade surplus for the first time and is expected to contribute up to 40 percent of global growth in 2025. This has drawn criticism that China's slowing economy is relying on boosting its share of global trade and flooding markets. Emerging markets were boosted by cheap goods diverted from the US market following tariffs imposed by US President Donald Trump. Beijing is closely monitoring the International Monetary Fund's Article IV review, seeking either approval of its economic policies or to avoid criticism. The IMF's endorsement is seen as a crucial indicator amid escalating tensions with its major trading partners. The IMF stated, "The Chinese economy ha s demonstrated remarkable resilience despite multiple shocks in recent years." The Fund did not directly mention Trump or the US-China trade war. The IMF raised its 2025 growth forecast for China to 5.0 percent from 4.8 percent, but warned that weaknesses in the property sector, local government debt, and declining domestic demand will continue to test policymakers. It now expects the Chinese economy to grow 4.5 percent in 2026, compared to a previous estimate of 4.2 percent.