The International Monetary Fund raised its China economic growth estimate for 2026, citing "further rebalancing" at home despite higher global oil prices, protracted uncertainty and structural headwinds that are expected to dampen activity.

In its World Economic Outlook update published late Wednesday, the IMF expects the country's economy to grow 4.6% in 2026, up 0.2 percentage points from the April estimate.

For 2027, the real GDP growth estimate moved 0.1 percentage point higher to 4.1%.

The IMF expects inflation in China to rise from low levels this year.