The International Monetary Fund said China's economy will grow faster than expected in 2025 and 2026, reports Caixin. But it cautioned that structural challenges such as weak consumption and a prolonged property slump remain.

The assessment was delivered at a press briefing in Beijing after the IMF completed its 2025 Article IV consultation mission. Staff met senior officials from the central government, the People's Bank of China, several ministries, as well as private-sector and academic representatives.

The fund now forecasts China's economy will expand five per cent in 2025 and 4.5 per cent in 2026. These are upgrades of 0.2 and 0.3 percentage points from its October World Economic Outlook, reflecting stronger exports, lower-than-expected tariffs and what it described as welcome fiscal stimulus.

Inflation is projected to rise from zero in 2025 to 0.8 per cent in 2026, remaining subdued compared with global trends.