A worker cycles past a housing complex under construction in Beijing on May 17, 2024.
Jade Gao | AFP | Getty Images
BEIJING — The International Monetary Fund on Wednesday raised its growth forecast for China this year to 5 percent from 4.6 percent, citing “strong” first-quarter figures and recent policy measures.
The upward revision comes after the IMF visited China for a regular assessment. The IMF now expects China’s economic growth to rise to 4.5% from 4.1% in 2025.
IMF First Deputy Managing Director Gita Gopinath said in a statement that the policy measures were “welcome” but that more comprehensive action was needed.
“The priority should be to mobilise central government resources to protect buyers of uncompleted pre-sale homes, accelerate the completion of uncompleted pre-sale homes and pave the way for resolution for insolvent developers,” she said.
“Increasing price flexibility, while monitoring and mitigating potential macro-financial spillovers, could help further stimulate housing demand and restore equilibrium.”
During his visit to China this month, Gopinath met with People’s Bank of China Governor Pan Gongsheng, Vice Minister of Finance Liao Min, Vice Minister of Commerce Wang Shouwen, People’s Bank of China Vice Governor Xuan Changneng and State Financial Regulatory Administration Vice Chairman Xiao Yuanqi, the IMF said in a statement.
“Near-term macroeconomic policies should aim to support domestic demand and mitigate downside risks,” Gopinath said.
“Achieving quality growth requires structural reforms to counter headwinds and address underlying imbalances,” she added.
Chinese President Xi Jinping stressed the need to promote “quality and sufficient employment” at the meeting on Monday, according to state media.
“Xi especially stressed improving employment support policies for college graduates and other young people,” Xinhua reported.
