The IMF warns that countries using industrial policies must carefully craft subsidies to avoid costly misallocation of resources. A third of policies from 2009-2022 focused on energy. China spent 4% of GDP on industrial policies from 2011-2023, lowering productivity by 1.2% and GDP by 2%. EU state aid peaked at 1.5% of GDP in 2022.

Read more at Yahoo Finance: National industrial policies can be effective, but they carry risks, IMF says