The head of the International Monetary Fund (IMF) on Dec. 10 urged China to rebalance its economy away from exports and investment toward domestic consumption, warning that the world’s second-largest economy is now too big to rely on foreign demand for sustained growth.
Speaking at the launch of the IMF’s 2025 Article IV consultation with China, an annual “health check” of the country’s economy, IMF Managing Director Kristalina Georgieva said Beijing should address “significant and pressing challenges” to its wider economic framework.
Georgieva said that China’s domestic demand remains persistently weak.
Low inflation relative to China’s trading partners has driven a real exchange-rate depreciation, which in turn has made exports cheaper and prolonged what the IMF describes as an “excessive reliance” on external demand….
IMF Urges China to Shift From Exports to Consumption
