China's Economic Growth Surpasses IMF's Expectations

China informed the IMF about a 5% economic growth for 2024, exceeding the expected 4.8%. This surprises the IMF, which adjusts its future projections. Yet, the IMF advises China to enhance domestic demand as a key to its growth strategy.

In a surprising development, China has reported a 5% economic growth for 2024 to the International Monetary Fund, a figure that surpasses the IMF's earlier forecast of 4.8%, according to IMF chief economist Pierre-Olivier Gourinchas.

In response to China's reported growth, the IMF has slightly revised its projections, elevating the forecast to 4.6% for 2025 and increasing it by 0.4% to 4.5% for 2026, attributing this optimism to fiscal measures that have boosted economic momentum.

However, the IMF continues to emphasize the need for China to make domestic demand a more prominent driver of its economic growth, a long-standing recommendation that has yet to be fully realized by Chinese authorities.

(With inputs from agencies.)