IMF says avoid more stimulus measures
The International Monetary Fund said containing financial risks and avoiding further stimulus measures should be the main priorities for policymakers in China, as they contemplate fresh strategies for sustained economic growth.
“We consider that vulnerabilities have risen to the point where containing them should be a priority. Therefore, additional stimulus should only be deployed if growth slows significantly below this year’s target,” David Lipton, first deputy managing director of IMF, told a news conference in Beijing.
The IMF kept its annual GDP growth forecast for China at 7.5 percent but lowered growth projections for next year from 7.3 percent to around 7 percent—a level that Lipton said is realistic if China carries out extensive financial reforms.