IMF Releases New Book Saying China's Growth Model Needs to Shift Toward Consumption and Services

On September 30, the International Monetary Fund (IMF) published a new book, "Toward a New Growth Model for the Chinese Economy," on its official website, pointing out that linking local officials' performance evaluation to GDP targets has led to infrastructure expansion, land-sale financing, and the accumulation of local government financing vehicle (LGFV) debt. LGFV cash flows can cover only about one-quarter to one-third of interest payments. The book recommends improving social security, advancing household registration (hukou) reform, and increasing the progressivity of the tax system.

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2026-10-04 00:06 · 9月30日，IMF发布新书《迈向中国经济新增长模式》，指出地方官员考核与GDP挂钩催生基建扩张与债务累积，城投现金流仅能覆盖约四分之一至三分之一利息，建议中国转向消费、服务业与生产率驱动并完善社保。

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This event IMF Releases New Book Saying China's Growth Model Needs to Shift Toward Consumption and Services 2026.09.30 · Reported

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Sayings · 2026-10-04 00:02 On September 30, the IMF released a new book, Toward a New Growth Model for the Chinese Economy, which points out that tying the evaluation of local officials to GDP has spurred infrastructure expansion and debt accumulation, that the cash flow of local government financing vehicles can cover only about a quarter to a third of interest payments, and which recommends that China shift to consumption, services and productivity-driven growth and improve social security.

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