On February 19, 2026, the International Monetary Fund (IMF) reaffirmed its GDP growth forecast for China at 4.5% for the year, despite expressing concerns about underlying risks to the economy. IMF Managing Director Kristalina Georgieva emphasized the need for China to adopt a 'brave choice' in accelerating structural reforms and reducing its heavy reliance on exports, which currently underpin its $19 trillion economy. During a press conference, she noted, 'Weak domestic demand and a slowing global economy pose significant risks,' highlighting the challenges that could hinder China's economic stability moving forward. The IMF's annual review indicated that while China's real GDP grew by 5% in 2025, meeting the government's target, the property sector is experiencing a 'deeper-than-expected' contraction, which is a primary domestic risk. Furthermore, the report pointed out that inflation averaged 0% in 2025, indicating persistent deflationary pressures that could further weaken domestic demand.