International Monetary Fund Managing Director Kristalina Georgieva told China's economic movers and shakers on Sunday (Mar. 24) that they are facing a "fork in the road" on whether they return to their economic policies or reform them to spur growth.
The IMF chief was in Beijing over the weekend to attend and speak at the China Development Forum, CNBC reported.
"China is poised to face a fork in the road - rely on the policies that have worked in the past, or update its policies for a new era of high-quality growth," she said during her speech. "With a comprehensive package of pro-market reforms, China could grow considerably faster than a status quo scenario."
While the country has seen a post-COVID rebound - with growth exceeding 5% in 2023 - it faced factors such as low productivity growth and an aging population, according to Georgieva.
Reforming the policies of the Asian market giant could unleash growth that would "amount to a 20% expansion of the real economy over the next 15 years," which meant "adding $3.5 trillion to the Chinese economy."
"In the medium term, China will continue to be a key contributor to global economic growth," she added.
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Over 100 foreign participants, including CEOs of major overseas firms as well as leaders of the IMF and World Bank, were expected to attend the Beijing summit.
During a keynote speech at the forum, which was reported by state media, Chinese Premier Li Qiang pledged efforts to promote "high-quality development," "intensify macro-policy adjustments," and expand domestic demand. He also vowed a "higher level of openness" while addressing challenges.
Separately, officials reportedly pledged further protection to foreign-funded firms as overseas investment flows to China began to trickle.
The Chinese government previously admitted the 2023 target "will not be easy," particularly since the country continued to face overcapacity and faltering price pressures amid a property and debt crisis.
Earlier this year at the World Economic Forum in Davos, Georgieva outlined some short- and long-term challenges China faced, warning that the world's second-largest economy needed structural reforms in order to ramp up growth and move toward boosting domestic consumption and confidence.
An IMF figure last November expected China's economy to grow 4.6% in 2024, warning of continued real estate struggles.
