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Wednesday, May 29, 2013

China Growth Outlook Cut by IMF as 'Decisive' Reforms Urged

The IMF (International Monetary Fund) has lowered its forecasts for China’s growth and they said that they are making “decisive” policy changes that would put the economy on a more sustainable path.

The expansion will be 7.75 percent this year and next, David Lipton, first deputy managing director of the IMF, said at a press briefing in Beijing after concluding an annual review of China. In April, the IMF forecast growth of 8 percent this year and 8.2 percent expansion in 2014.

China has assured the IMF that reining in credit is a priority, said Lipton, the No. 2 official at the Washington-based fund.

Rapid growth in financing raises questions over the quality of investment and the repayment ability of companies and local governments, Lipton said.

Curbing credit expansion may slow growth in the short term while putting the economy on a more sustainable path, Lipton said.

Read Latest Breaking News from Newsmax.com http://www.moneynews.com/Markets/china-growth-outlook-IMF/2013/05/29/id/506830#ixzz2UglvRGs1

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