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.

Read the full article at  http://www.bloomberg.com/news/2013-07-17/china-downside-risks-increasing-for-economic-growth-imf-says.html

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On July 17, 2013   /   China Economy, IMF