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These projections reflect an enhancement from the October outlook owing to economic stimulus initiatives and tariffs on Chinese exports being lower than anticipated.
The IMF predicts that average inflation in China will increase to 0.8% in 2026, up from 0% in 2025.
"Even with strong [economic] growth, considerable imbalances persist due to weak domestic demand and deflationary pressures," observes the report. "Reduced inflation compared to trading partners has resulted in a decline of the real exchange rate, which is benefiting robust exports and an increasing current account surplus."
The IMF asserts that shifting the Chinese economy to a consumption-driven model necessitates more immediate and strong macroeconomic stimulus steps, reforms to lower high household savings, and "a reduction of unproductive investment and redundant industrial support." Concurrently, the IMF thinks that this set of measures will aid in decreasing external discrepancies.
China must expedite assistance for local consumption and lessen its reliance on exports, said the organization's Managing Director, Kristalina Georgieva, to reporters.
source: imf.org
The IMF predicts that average inflation in China will increase to 0.8% in 2026, up from 0% in 2025.
"Even with strong [economic] growth, considerable imbalances persist due to weak domestic demand and deflationary pressures," observes the report. "Reduced inflation compared to trading partners has resulted in a decline of the real exchange rate, which is benefiting robust exports and an increasing current account surplus."
The IMF asserts that shifting the Chinese economy to a consumption-driven model necessitates more immediate and strong macroeconomic stimulus steps, reforms to lower high household savings, and "a reduction of unproductive investment and redundant industrial support." Concurrently, the IMF thinks that this set of measures will aid in decreasing external discrepancies.
China must expedite assistance for local consumption and lessen its reliance on exports, said the organization's Managing Director, Kristalina Georgieva, to reporters.
source: imf.org
