New Delhi, Feb. 20 -- China's economy expanded by 5 per cent in 2025 and is projected to grow 4.5 per cent this year, 0.3 percentage points higher than the IMF's October forecast, reflecting resilience driven by "robust exports and fiscal stimulus," according to the International Monetary Fund (IMF).

However, the IMF cautioned that "the growth model of the world's second-largest economy faces increasing challenges," noting that "domestic demand has been subdued, in part because the protracted property slump, combined with a weak social safety net, hurt consumers' willingness to spend."

The Fund warned that this dynamic "has resulted in deflationary pressures and has made growth increasingly dependent on external demand," adding that "Ch...