IMF Urges China to Expand Fiscal Stimulus
The IMF urged China to deploy a larger fiscal stimulus to combat deflationary pressures and weak domestic demand. Officials warn economic growth will slow to 4.5% this year and 4.0% in 2027 without stronger policy support.
The International Monetary Fund urged China to deploy a larger fiscal stimulus during an afternoon press conference on Thursday as the economy teeters on deflation. Growth is projected to slow to 4.5% this year from 5.0% in 2025, according to the IMF World Economic Outlook. This deceleration highlights persistent domestic weakness that threatens broader macroeconomic stability.
