IMF Warns China Stimulus Lacks Ambition to Revive Economy

The International Monetary Fund warned that China's current efforts to revive its flagging domestic economy lack the ambition necessary to stimulate demand. During the fund's annual meeting in Bangkok, officials stated that the country's stimulus measures have fallen short of what is required for a meaningful recovery.

Krishna Srinivasan, the IMF's Asia-Pacific department chief, characterized the undervaluation of the yuan as a symptom of underlying domestic imbalances. According to the IMF's 2026 assessment, the yuan is undervalued in real terms by a range of 17.3% to 25.3%, with a midpoint of 21.3%.