I.M.F. warns China to hasten economic changePosted: July 18, 2013
China’s growth has slowed significantly in recent months. But even its current pace of expansion may not be sustainable, the International Monetary Fund warned on Wednesday, unless China starts making significant and systemic economic changes — and soon.
“Since the global crisis, a mix of investment, credit and fiscal stimulus has underpinned activity,” the I.M.F. said in a major annual assessment of the Chinese economy. “This pattern of growth is not sustainable and is raising vulnerabilities. While China still has significant buffers to weather shocks, the margins of safety are diminishing.”
The report emphasised increasing risks to the Chinese economy, touching on familiar themes though with more urgency than previous reports.
China still has large foreign currency reserves and plenty of room for new government spending to buffer any unexpected shocks, Markus Rodlauer, the I.M.F.’s China mission chief, said in an interview. But he said the Chinese economy…
View original post 1,062 more words