Salient to Investors:
The IMF said:
- Risks are increasing that China’s economic growth this year will fall short of its forecast of 7.75 percent.
- China is becoming increasingly vulnerable to risks from an expansion of non-traditional sources of credit and borrowing by local governments. China’s heavy reliance on credit and investment to sustain activity is raising vulnerabilities.
- China must transition to a new growth path that is more consumption-based, inclusive, and environmentally friendly.
- The yuan is moderately undervalued against a broad basket of currencies.
- The shift to less-regulated parts of the system poses risks to financial stability.
- Global growth will be 3.1 percent in 2013.
The median economist predicts 7.6 percent growth for China in 2013.
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