Chinese economy gets vote of confidence as IMF forecasts ‘sustainable growth’
But in its annual review, fund says credit growth ‘remains too fast’ and the country should ‘stay on the healthy diet’
The International Monetary Fund has given a vote of confidence to China’s economy and efforts at “rebalancing”, forecasting that the country’s growth will stay on track for the foreseeable future.
“We welcome the authorities’ strategy to more decisively shift the policy focus from high-speed to high-quality growth,” the IMF said in a statement released in Beijing on Wednesday, using the language used by China to describe its policy.
“We are confident that China will rebalance to a sustainable growth mode,” it added.
That was the IMF’s main conclusion after a two-week field visit and “highly constructive and candid discussions” with high-ranking financial cadres, including Vice-Premier Liu He and central bank governor Yi Gang, for its annual review of China’s economic health.
The assessment will be welcomed by Beijing at a time when it is facing the threat of a trade war with the United States and as it grapples with a mountain of debt.
