IMF Urges China to Shift Growth Model Toward Consumption, Services

The International Monetary Fund (IMF) has urged China to move away from its traditional investment- and export-driven growth model, saying the world’s second-largest economy needs a new growth model centered on consumption, services and productivity gains.

In a report on China’s growth prospects, the IMF said the old model that powered decades of rapid expansion is facing mounting constraints from high debt, a prolonged property downturn, demographic pressures and limits to export-led growth.