Market Chatter: IMF Calls on China to Focus on Consumption-Led Model

MT Newswires Live

Feb 26

The International Monetary Fund is asking China to hasten its shift to a consumption-led economic growth model following a record trade surplus in 2025, the South China Morning Post reported Wednesday.

"China needs to move decisively towards consumption-led growth," adding the country has to put a stop to its "unwarranted industrial policy," IMF China Mission Chief Sonali Jain-Chandra told the SCMP in an interview.

Jain-Chandra echoed the IMF's recommendation for China to inject more fiscal stimulus to drive consumption and help stave off the effects of the property crisis, according to the SCMP.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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