The International Monetary Fund (IMF) is expecting growth in China to top out at 6.6% this year.
Key highlights
IMF expects headline inflation to rise gradually to 2.5%, producer price inflation to remain moderate.
China has done a good job of reducing financial sector risks and further opening up its economy.
Credit growth remains unsustainably high, some aspect of China’s rebalancing have slowed.
China must stick to its deleveraging agenda, needs to continue implementing fiscal reforms to reinforce economic rebalancing.
IMF says that China’s near-term outlook remains robust due to “strong domestic momentum”.
Widespread state intervention and a mostly-closed economy remain challenges for China, IMF reiterates its call for China to de-emphasize growth targets.
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