IMF lifts China's 2024 growth forecast to 5%

BEIJING, China — The International Monetary Fund on Wednesday raised its 2024 growth forecast for China to 5%, citing recent policy moves by Beijing to boost its struggling economy.

"China's economic growth is projected to remain resilient at 5% in 2024 and slow to 4.5% in 2025," the IMF said in a press release.

The decision was "driven by strong first-quarter GDP data and recent policy measures", it added.

The Fund had initially projected 4.6% growth for this year -- compared with "around 5%" targeted by authorities in March.

China's economic growth has been battered in recent years by a long-running debt crisis in the property market, which accounts for a quarter of gross domestic product.

Weak consumer spending and persistent deflation are also dragging on growth.

The IMF on Wednesday welcomed official steps in recent weeks to boost the housing market.

"The ongoing housing market correction, which is necessary for steering the sector towards a more sustainable path, should continue," it said.

But, it added that "a more comprehensive policy package would facilitate an efficient and less costly transition while safeguarding against downside risks".