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Reuters · October 15, 2026

IMF Official Says China Needs Larger Fiscal Stimulus; IMF Projects China Growth of 4.5% in 2026 and 4.0% in 2027

  • Krishna Srinivasan, director of the IMF's Asia and Pacific Department, told a press conference on Thursday that the fiscal support China has provided was, in the IMF's view, limited in size and scope, and that more fiscal stimulus is needed in the near term.
  • In its World Economic Outlook, the IMF projected China's economic growth to slow to 4.5% this year from 5.0% in 2025, and to 4.0% in 2027.
  • Srinivasan said most of China's growth is explained by external demand, and that the IMF has proposed steps to rehabilitate the real estate sector, boost household confidence, and build social safety nets.
Removed: Characterization of China's economy and property sector beyond the statements and projections reported.

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