Kristalina Georgieva, the managing director of the International Monetary Fund, warned China that it needs to reduce its dependence on exports and encourage domestic consumption to avoid escalating global trade tensions.

Kristalina Georgieva emphasized that, considering its size as the second largest economy, China cannot continue to rely on exports for growth. She mentioned that a transition to a consumption-based economic model would be beneficial both for China and for the global economy.

In the context of escalating trade tensions with the United States and concerns from Europe and Mexico, the IMF estimated that China should allocate 5% of its GDP in the next three years to stabilize the real estate sector and boost social spending. Additionally, the IMF has revised upwards its growth forecast for the Chinese economy for 2025 and 2026, due to domestic stimulus measures.