### World Bank and IMF Boost China's Economic Growth Forecasts Amid Policy Support The World Bank and the International Monetary Fund (IMF) have recently upgraded their economic growth forecasts for China for the years 2025 and 2026. This adjustment reflects a positive outlook driven by supportive fiscal and monetary policies, which have bolstered domestic consumption and investment. The forecasts highlight China's resilience in the face of global economic challenges, including trade tensions and inflationary pressures. Notably, the World Bank has projected a growth rate of **4.9% for 2025** and **4.4% for 2026**, while the IMF has set its forecast at **5% for 2025**. These revisions underscore the importance of domestic demand in sustaining economic expansion in China, particularly as the country shifts towards a consumption-led growth model [https://www.indexbox.io/blog/world-bank-upgrades-chinas-2025-and-2026-economic-growth-forecasts][https://news.az/news/world-bank-raises-china-2025-growth-forecast]. ### Breakdown of Economic Forecasts and Influencing Factors 1. **Growth Rate Adjustments**: - The World Bank has raised its forecast for 2025 to **4.9%** and for 2026 to **4.4%** [https://www.anews.com.tr/economy/2025/12/11/world-bank-raises-chinas-economic-growth-forecast-for-2025-to-49]. - The IMF has increased its forecast for 2025 to **5%**, citing notable resilience in the Chinese economy [https://www.scmp.com/economy/china-economy/article/3335880/chinas-2025-growth-forecast-raised-5-imf-citing-resilience]. 2. **Drivers of Growth**: - Accommodative fiscal and monetary policies have been pivotal in supporting domestic consumption and investment [https://news.az/news/world-bank-raises-china-2025-growth-forecast]. - The IMF has emphasized the need for China to transition from an export-driven economy to one that is more reliant on domestic consumption [https://www.indexbox.io/blog/imf-urges-china-to-accelerate-structural-reform-for-sustainable-growth]. 3. **Economic Resilience**: - The upgrades come despite challenges such as inflation, which reached its highest level in 21 months, indicating a recovery in consumer demand [https://www.semafor.com/article/12/10/2025/imf-revises-china-growth-forecast]. - The reduction of tariffs in US-China trade relations has also contributed positively to the economic outlook [https://www.finanznachrichten.de/nachrichten-2025-12/67197526-imf-lifts-china-s-growth-outlook-020.htm]. ### Supporting Data and Evidence - **Forecasts**: - **World Bank**: 2025 growth forecast at **4.9%**, 2026 at **4.4%** [https://www.anews.com.tr/economy/2025/12/11/world-bank-raises-chinas-economic-growth-forecast-for-2025-to-49]. - **IMF**: 2025 growth forecast at **5%**, up from previous estimates [https://www.businesstoday.com.my/2025/12/10/imf-raises-chinas-economic-forecast-for-2025-to-5]. - **Inflation Data**: - Consumer inflation in China rose unexpectedly in November, indicating a recovery in demand and easing deflationary concerns [https://www.semafor.com/article/12/10/2025/imf-revises-china-growth-forecast]. ### Conclusion: A Positive Outlook for China's Economy In summary, the recent upgrades to China's economic growth forecasts by both the World Bank and IMF reflect a cautiously optimistic view of the country's economic trajectory. The key findings are as follows: 1. **Upgraded Growth Forecasts**: The World Bank and IMF have raised their growth projections for 2025 to **4.9%** and **5%**, respectively. 2. **Supportive Policies**: Accommodative fiscal and monetary policies are crucial in driving domestic consumption and investment. 3. **Need for Structural Reform**: The IMF urges China to accelerate its shift towards a consumption-led growth model to ensure sustainable economic development. These insights suggest that while challenges remain, China's economy is poised for a period of growth supported by effective policy measures and a resilient domestic market [https://www.indexbox.io/blog/world-bank-upgrades-chinas-2025-and-2026-economic-growth-forecasts][https://www.scmp.com/economy/china-economy/article/3335880/chinas-2025-growth-forecast-raised-5-imf-citing-resilience].