BEIJING: The International Monetary Fund (IMF) has lauded the Chinese economy in its annual economic evaluation report for China.
According to the Article Four Consultation Report, China is transitioning to a slower yet safer and more sustainable growth. This involves giving the market a more decisive role in the economy.
The IMF expects growth to slow to 6.8 percent this year. It says China has made progress in reducing vulnerabilities. It cites slowing down credit growth, moderating investment, and passing a new budget law aimed at safeguarding fiscal sustainability.
The report says a key challenge now is to ensure sufficient progress in reducing vulnerabilities, while preventing growth from slowing too much. As for the Chinese currency, the renminbi, the report says it’s “no longer undervalued.”
