China should boost consumption to offset slowdown and trade war with US, IMF says
Having cut China’s growth forecast, fund officials also suggest stronger social protections and doing more to address property sector woes
International Monetary Fund officials urged China on Thursday to boost domestic consumption, address its property sector crisis and prioritise service sectors as ways to offset its economic slowdown and its trade war with the US.
In a briefing during the fund’s spring meeting in Washington, Kristalina Georgieva, the IMF’s managing director, said that Beijing should rely less on exports and invest more in stimulating domestic demand. She also called for “strengthening social protections” to reduce consumer savings and encourage spending.
The IMF also downgraded the global economic growth forecast to 2.8 per cent for 2025, down half a percentage point from its projection in October, reflecting the continued strain of the US-China trade dispute that has disrupted global supply chains and placed pressure on emerging markets globally.
China is standing firm against US trade pressure despite softer rhetoric from US President Donald Trump and Treasury Secretary Scott Bessent this week.
Chinese companies have responded to tariffs by returning Boeing jets, reducing US soybean purchases and halting shipments to American buyers.