The IMF chief states that China needs reforms to stop significant growth declines.

• In 2023, China's economy experienced slow growth due to problems in the real estate market and a decline in exports.
• Investors expect the economy to have grown by around 5% last year.

On Monday, the head of the International Monetary Fund stated that China must implement structural changes to prevent a significant decrease in growth rates.

In an interview with CNBC at the World Economic Forum in Davos, Switzerland, Kristalina Georgieva stated that China is facing both immediate and long-term difficulties.

Georgieva stated that in the short-term, China's property sector and local government debt required fixing. In the long-term, she pointed out demographic changes and a loss of confidence as concerns.

Georgieva stated that for China to further open its economy, it must implement structural reforms that promote domestic consumption, increase people's confidence, and encourage them to spend more.

"If reforms are not implemented, China may experience a decline in growth rates below 4%," she stated.

In 2023, China's economy experienced slow growth due to real estate problems and a decline in exports. Despite this, investors anticipate that the economy would have expanded by approximately 5% in the previous year.

The IMF raised its China growth forecast to 5.4% for 2023 after some policy moves by Beijing, but still expects growth to slow to 4.6% in 2024, warning of continued real estate struggles.

Georgieva is among the numerous prominent economic experts present at this year's WEF conference, which concludes on Friday. The theme of the 2024 WEF summit is "Rebuilding Trust," with geopolitical tensions, global fragmentation, inflation, and economic growth being the main topics discussed.