IMF Cuts China's Growth Forecast, Warns of Global Growth Drag The International Monetary Fund has reduced its growth forecast for China, attributing this revision to the country's dwindling demand for oil and metals, which in turn is expected to exert downward pressure on global growth. The Fund has also highlighted that elevated global oil prices, coupled with protracted uncertainty and structural headwinds, are set to impede economic activity. Meanwhile, the country's economic growth is anticipated to slow further in 2027. The International Monetary Fund has trimmed China's growth forecast, pointing to weaker demand for imports such as oil and metals, with global growth suffering as a result. The revised projection, outlined in the latest IMF World Economic Outlook report, lowers China's forecast to 4.5 percent, from 4.6 percent earlier this year. This marks a 0.1 percentage point reduction from its previous estimates. China's economic growth is expected to slow further in 2027, to 4.0 percent. A combination of higher global oil prices and sluggish domestic consumption is weighing on output.China Property Slump Dents Consumer ConfidenceAccording to the IMF, protracted uncertainty and structural headwinds are expected to impact economic activity. Beijing's officials have maintained that the country's growth will remain within the target range of 4.5-5.0 percent. China's property sector has been experiencing a prolonged slump, which has dented domestic consumer confidence and subdued retail activity despite steady manufacturing exports and the growth of the tech industry, particularly in artificial intelligence and electric vehicles.The IMF raised growth forecasts for several key regional semiconductor suppliers, with South Korea expected to reach 3.3 percent and Taiwan 10.7 percent. This is due to a surge in international demand for high-tech computing hardware. The report also highlights that while some parts of Southeast Asia have reaped benefits from investments in data centers, smaller island nations in the region are facing subdued growth due to increasing fuel costs and lower tourism revenue.Japan Fiscal Measures Boost Growth ForecastJapan's economic growth is forecast to hit 0.7 percent, an increase of 0.1 percentage points, following the implementation of fiscal measures by Prime Minister Sanae Takaichi. While global economic growth is expected to be impacted by a range of factors, it is anticipated that targeted policy support will help to stabilize the slowdown.