China's 2024 economic growth beats IMF expectations at 5%
Pierre-Olivier Gourinchas, the chief economist at the International Monetary Fund, highlighted during a Friday meeting with the media that the 5% GDP growth of the Chinese economy in 2024 was a "positive surprise." This growth exceeded earlier IMF forecasts.
China has an expected economic growth rate of 4.6% in 2025, and the forecast for 2026 is 4.5%, largely due to the implementation of certain fiscal reforms. However, as Gourinchas pointed out, these reforms are insufficient.
China grew faster in 2024 than anticipated
The IMF's chief economist emphasized the importance of internal demand as an additional growth stimulus. He argued that an economy as large as China's cannot rely solely on exports.
Gourinchas also indicated that the global implications of a slowdown in Chinese growth would be significant, especially for developing countries. The IMF forecasts stabilization of China's economic growth at 4.5%, provided that both international and domestic challenges are addressed.
As reported by Reuters, in September of last year, Beijing approved a plan to raise the retirement age from 60 to 63 for men, from 55 to 58 for women working in offices, and from 50 to 55 for women performing physical labor.
