XIAN, China  - The International Monetary Fund maintained its economic growth forecast ​for China at ⁠4.5% this year but warned of ‌risks from weak domestic demand and a slowing global economy ​as it published its annual review of the Chinese economy ​for 2025 ​on Wednesday. 

IMF Managing Director Kristalina Georgieva told reporters in Beijing in December that she had ⁠urged Chinese policymakers to make the "brave choice" of speeding up structural reform and reducing the $19 trillion economy's reliance on exports, during a press conference at ​the ‌end of the ⁠Fund's discussions ⁠with the Chinese government over the 2025 report.

 

KEY DETAILS:

* Said ​real GDP grew by ‌5% in 2025, meeting Beijing's official growth ⁠target for the year, but noted the GDP deflator had continued to decline

* Called a "deeper-than-expected" contraction in the property sector the main domestic risk to the economy

* Renewed escalation of trade tensions is the main external risk, the Fund said

* Urged policymakers to make transitioning to a consumption-led model the ‌overarching priority

* Recommended a cut in industry support ⁠by reducing the amount the government makes ​available in subsidies from 4% of GDP to 2%

* Urged authorities to restructure the debt of ​unsustainable local government financing ‌vehicles and take steps to ⁠prevent future debt buildup

(Reporting by ​Joe Cash; Editing by Kate Mayberry)