By Wang Rujun from People’s Daily-China’s GDP growth is projected to be 6.6 percent in 2016 before moderating to 6.2 percent in 2017, the IMF forecast in its newly-released World Economic Outlook and Global Financial Stability Report.
The reports, released ahead of the annual meeting of IMF and World Bank in Washington next weekend, gave positive comments on Chinese economy, saying that thanks to its previous policies to stabilize growth, China is expected to continue a relatively rapid growth.
The latest reforms launched by Chinese government have improved the risk-resistance capability of China’s economy and financial system by securing a more balanced growth and increasing the weight of market, the reports added.
The IMF pointed out in the World Economic Outlook that emerging economies like China and India constitute a strong dynamo for global economic growth by registering a growth higher than world average.
As China continues its efforts in restructuring economy, its consumption maintains a moderate growth and the service industry contributes more to economy, said the report, adding that China’s economic transition will be continued as the country improves its social security network and further opens its service industry.
The report also predicted that with the continuous increase of China’s per-capita income, the income gap between China and developed world will narrow down 7 percentage points in the coming five years.
China’s push to switch its economic engine from investment and industry towards consumption and services would drag down its near-term growth, but lay a foundation for long-term growth, the IMF stressed.
In the Global Financial Stability Report, the IMF underlined that in the past 20 years, emerging economies have built a more resilient financial system by improving their corporate management and stepping up investor protection measures.
China’s latest reforms have improved the risk-resistance capability of its economy and financial system by securing a more balanced growth and bringing the market to a larger role, the report added.
But China still needs more measures to address the corporate debt and other fragile factors in financial sector, IMF suggested, adding that such measures can include a lower leverage ratio and improvement of supervision framework.