IMF Lowers Chinese Economy Growth Forecast

China needs to make a “decisive push” to launch new market-oriented reforms and has to control rapid credit growth that could lead to financial problems, the International Monetary Fund said on Wednesday.
The fund trimmed its growth forecast for China this year from 8% to 7.75% because of weaker global demand but said the Chinese economy should remain robust.

The president, Xi Jinping, and other leaders who took power in November have promised to make China’s economy more productive but have yet to disclose details. The World Bank and other advisers say Beijing urgently needs to curb the dominance of state companies and promote free-market competition or growth will decline sharply.

In meetings with visiting IMF officials, Chinese leaders emphasised their desire to nurture “more balanced, inclusive” growth, said David Lipton, a deputy IMF managing director.
“They need continued liberalisation and reduced government involvement [in the economy], allowing a greater role for market forces,” Lipton told reporters.

via The Guardian

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