The International Monetary Fund has upgraded its forecast for China’s economy, predicting a 5% annual growth rate for this year, which is 0.4 percentage points higher than its earlier estimate. The IMF emphasized the need for consumer-friendly reforms to sustain strong and high-quality growth in the world's second-largest economy.
The report highlighted the importance of building stronger social safety nets and increasing workers' incomes to boost consumer spending. It also recommended that Beijing should reduce subsidies and other policies favoring manufacturing over other sectors like services.
