China ‘managing transition’ to stable growth
The International Monetary Fund delivered a reassuring economic assessment of China on Friday, at the end of a week that saw the Chinese currency plummet and global stock markets buckle at the prospect of more bad news from the world’s second-biggest economy.
In its annual checkup of the Chinese economy, the IMF predicted China’s economy would grow 6.8 percent this year and 6.3 percent in 2016, unchanged from previous forecasts. China last year registered 7.4 percent growth, already the slowest since 1990.
On Tuesday, China rattled glob- al financial markets by devaluing its currency, the yuan, by 1.9 percent, biggest one-day drop in a decade. Beijing said the yuan was overvalued and the devaluation was meant to catch up to market forces, not counteract them. The IMF praised China for giving investors more say in its foreignexchange rate.