China slowdown ‘normal’ but bumps ahead

Lagarde told the World Economic Forum in the Swiss ski resort of Davos that China’s transition to an economy led by consumer demand instead of state investment was unlikely to lead to a “hard landing” for the world’s second-largest economy.

The Chinese government announced this week that its economy grew by 6.9 percent in 2015, the slowest rate in a quarter of a century.

Lagarde told a panel on the final day of the Davos meeting: “We are not seeing a hard landing… We are seeing an evolution, a big transition which is going to be bumpy.

“We have to get used to it and it’s a very normal and proper way to actually move towards a more sustainable and a more quality growth, we all hope,” she said.

Even before the growth figures were released, worries of a weak Chinese economy had sown fears across global markets.

Share prices have been plummeting since January 1, with low oil prices also having a negative effect as a supply glut destabilises fragile energy-producing countries.
Lagarde told the World Economic Forum in the Swiss ski resort of Davos that China’s transition to an economy led by consumer demand instead of state investment was unlikely to lead to a “hard landing” for the world’s second-largest economy.

The Chinese government announced this week that its economy grew by 6.9 percent in 2015, the slowest rate in a quarter of a century.

Lagarde told a panel on the final day of the Davos meeting: “We are not seeing a hard landing… We are seeing an evolution, a big transition which is going to be bumpy.

“We have to get used to it and it’s a very normal and proper way to actually move towards a more sustainable and a more quality growth, we all hope,” she said.

Even before the growth figures were released, worries of a weak Chinese economy had sown fears across global markets.

Share prices have been plummeting since January 1, with low oil prices also having a negative effect as a supply glut destabilises fragile energy-producing countries.
Source: AFP