IMF’s Georgieva urges China to pivot from exports

International Monetary Fund Managing Director Kristalina Georgieva said on Wednesday that China needs to move its economy away from export-led growth and toward more domestic consumption. She spoke on the same day that customs data showed Beijing on course for a record annual trade surplus.rmb.reuters

At a press conference during the IMF and World Bank annual meetings in Bangkok, Georgieva repeated advice the Fund has given Beijing for years. "For surplus countries, what they need to do is increase domestic consumption. That clearly applies to China's growth model. Shift from exports more toward domestic consumption," she said, according to Reuters.rmb.reuters

Exports surge in September

China's exports rose 36.3% in September from a year earlier in dollar terms, well above the 25.5% that economists polled by Reuters had expected. Imports grew 31%. China's General Administration of Customs reported a $133.5 billion surplus for the month, which The New York Times said was the second-highest monthly figure on record.reuters+1

The surplus for the first nine months of the year reached $938 billion, according to the Associated Press. That has raised expectations that China will beat last year's full-year record of about $1.2 trillion. Semiconductor exports more than doubled in value between January and September, and auto exports rose 54.3%, driven by global demand for Chinese electric vehicles and hybrids. The AP said pressure is building on China from trading partners, including the European Union, to rebalance trade.bloomberg+1

A message for all three major economies

Georgieva's comments on China were part of a wider warning about global imbalances. According to The Economic Times, she said those imbalances widened to 0.7% of global GDP in 2025, and that China and the United States were the biggest contributors. Deficit countries need to save more and spend less, while Europe needs to invest more in competitiveness, she said.economictimes.indiatimes+1

"To put it very simply, China needs to spend more, the US has to save more, and Europe has to invest more," Georgieva said.rmb.reuters

She also said the United States cannot rely on growth alone to reduce its debt. "Growth of course helps, but it cannot deliver fast enough the necessary adjustments. So, some (fiscal) measures would be necessary," she said.rmb.reuters

G20 talks set for Thursday

G20 finance ministers are scheduled to meet on Thursday on the sidelines of the Bangkok meetings. The US holds the G20 presidency this year and has used it to push allies to take stronger action against what it calls China's "non-market" economic policies, which Washington blames for excess industrial capacity and a flood of global exports. Treasury Secretary Scott Bessent is not attending the Bangkok meetings. Reuters reported that he chose domestic engagements instead as the US midterm campaign intensifies.rmb.reuters