
China is transitioning to a slower yet safer and more sustainable growth, with the growth rate forecasted to slow to 6.8 percent this year on the back of slower investment, especially in real estate, said the International Monetary Fund (IMF) on Friday.
"The labor market has remained resilient despite slower growth, as the economy pivots toward the more labor-intensive service sector. This, in turn, has supported household consumption," the Washington-based institution said in its annual Article IV Consultation Staff Report for China.
The IMF said that the substantial appreciation of the Chinese currency, renminbi, in real effective terms this year, has brought the exchange rate to a level that is "no longer undervalued."
The IMF considers China's recent move to improve its exchange rate formation system as "a welcome step" to allow market forces to have a greater role in determining the exchange rate. It reiterated that China can, and should, aim for an effectively floating exchange rate regime within two or three years.
The IMF welcomed China's progress in reducing vulnerabilities, including by slowing down credit growth, moderating investment, and passing a new budget law aimed at safeguarding fiscal sustainability.
"The challenge now is to take the next steps to a more open and market-based economy," said Markus Rodlauer, IMF mission chief for China. The IMF urged China to make "bold" structural reforms, such as moving to a more market-based financial system, improving the management of government finances, and leveling the playing field between state-owned enterprises and the private sector.
GMT 09:54 2018 Tuesday ,23 January
Davos-bound bosses very upbeat on world economyGMT 09:37 2018 Tuesday ,23 January
Former KPMG executives charged in accounting oversight scamGMT 22:49 2018 Sunday ,21 January
Brexit special trade agreement possibleGMT 22:46 2018 Saturday ,20 January
China economy rebounds in 2017 with 6.9% growthGMT 22:37 2018 Saturday ,20 January
GE takes one-off hit of $6.2 bn linked to insurance activitiesGMT 19:58 2018 Saturday ,20 January
Watchmakers hope to make Chinese market tickGMT 19:54 2018 Saturday ,20 January
US shutdown unlikely to harm debt rating: FitchGMT 19:50 2018 Saturday ,20 January
EU's Moscovici slams Ireland, Netherlands as tax 'black holes'

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©
Send your comments
Your comment as a visitor