The International Monetary Fund (IMF) has raised China’s 2025 growth forecast to 4.6 per cent from an earlier projection of 4.5 per cent, as stimulus measures start percolating in the world’s second-largest economy.
“This revision reflects carry-over from 2024 and the fiscal package announced in November largely offsetting the negative effect on investment from heightened trade policy uncertainty and property market drag,” the IMF said on Friday in its World Economic Outlook.
Global growth is projected at 3.3 per cent this year, unchanged from the IMF’s October forecast as an upwards revision in the United States offset downward revisions in other major economies.
China’s economic direction this year hinges on the speed, strength and effectiveness of its fiscal-policy roll-out, as well as the pace of monetary easing, said Lynn Song, chief economist for Greater China at Dutch financial services corporation ING.
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