26 May 2015
China expected to grow 6.8% year-on-year in 2015 – IMF
FXStreet (Mumbai) - The International Monetary Fund (IMF), in its report on Tuesday, said China's annual economic growth is expected to be 6.8% this year, before slowing further to 6.25% in 2016.
"If incoming data suggest that growth is likely to exceed 7 percent, the authorities should take advantage of the opportunity to reduce vulnerabilities faster," the IMF said. "If instead growth looks set to dip below 6.5 percent, then fiscal policy should be eased,” IMF added.
The IMF also said China still faces risks from unsustainable credit and investment growth and urged government to quicken reforms, which includes making the Yuan more flexible.
"We believe that China should aim to achieve an effectively floating exchange rate within 2-3 years," the IMF said.
"If incoming data suggest that growth is likely to exceed 7 percent, the authorities should take advantage of the opportunity to reduce vulnerabilities faster," the IMF said. "If instead growth looks set to dip below 6.5 percent, then fiscal policy should be eased,” IMF added.
The IMF also said China still faces risks from unsustainable credit and investment growth and urged government to quicken reforms, which includes making the Yuan more flexible.
"We believe that China should aim to achieve an effectively floating exchange rate within 2-3 years," the IMF said.