IMF sees some signs of China stabilization; reforms can boost medium-term growth

WASHINGTON : The International Monetary Fund said on Thursday it is seeing some signs of stabilization in China’s economy from recent data but believes it can grow at a faster pace over the medium term if it takes steps reforms its economy to rebalance growth from investment towards consumer spending.

Chief spokesperson Julie Kozack told a regular news briefing that the IMF continues to believe that China can achieve around 5 per cent growth this year, with detailed projections due when the IMF publishes its World Economic Outlook during IMF-World Bank annual meetings in Marrakech, Morocco on Oct. 10. The Fund sees China’s GDP growth slowing to about 3.5 per cent over the medium term, but this can be accelerated with economic reforms, she added.