IMF managing director Kristalina Georgieva has said that China needs to fix “significant” imbalances in its economy, including deflation that has driven a depreciation of the renminbi and boosted exports at a time of rising trade tensions.

China signaled on Thursday it will rely on fiscal stimulus to manage the economy in 2026, pledging to maintain a “necessary” budget deficit and debt levels to shore up growth while tackling local government financial strains.

According to the World Bank’s latest China Economic Update, Advancing Reforms, Enhancing Prospects, growth is estimated at 4.9% in 2025 and projected at 4.4% in 2026, as existing headwinds are expected to persist.

China’s services activity expanded at the weakest pace in five months, a private survey showed, adding more evidence of sluggish consumer demand that’s putting further pressure on a slowing economy.

Chinese leaders promised on Thursday to maintain a "proactive" fiscal policy next year that would stimulate both consumption and investment to maintain high economic growth, which analysts expect Beijing to target at roughly 5%.

B aijiu, China’s favourite firewater, is losing its bite. This year retail prices have been hovering around the benchmark of 1,499 yuan ($212) a bottle, as set by Kweichow Moutai, a state-owned giant.

Bank increased its projection for Chinese economic growth for this year by 0.4 percentage points - Anadolu Ajansı

The International Monetary Fund on Wednesday urged China to make the "brave choice" of speeding up structural reform, as pressure grows on the world's second-largest economy to shift towards a consumption-led model and curb reliance on debt-driven exports.