IMF Predicts That There Will Be A Whole Scaled Economic Speeding Up This Year
Issued at:2018-08-06 Views:3049The IMF said in a report, China's economy continued to perform strongly, due to the lag effect of financial regulation tightening measures and weakening of external demand, China's economic growth rate in 2018 is expected to slightly dropped to 6.6%.In addition, the IMF also said that while 2017 external position slightly stronger than the fundamentals of the corresponding levels, but the RMB exchange rate is still roughly in line with fundamentals.
The IMF argues that financial regulation tightening measures lag effect and the
reduction in external demand is a slight drop in economic growth. Headline
inflation remained at 2% level, the future is expected to gradually rise to
2.5%.
The IMF points out, continue to make progress in several key areas of reform. The
wide range of regulatory reform to reduce the risk of the financial sector, the
excess capacity cuts work, continue to push forward pollution control efforts
to strengthen, recently to speed up the opening process.
The agency said, credit growth slowed significantly, but is still strong. Although
the ratio of debt to GDP stable enterprise, but the total amount of
non-financial-sector debt still rise faster than GDP growth. Estimates that
2017 general government deficit (including the estimated budget investment
spending) or the equivalent of about 11% of GDP.
According to the report, in 2017, the ratio of current account surplus to GDP
fell by 0.4%, to 1.4%.In 2018 is expected to shrink to 0.9% of GDP, the reason
is that the terms of trade deteriorate.Net capital outflow from $2016 in 646
billion, has fallen sharply in 2017 to $73 billion. The yuan to a basket of
currencies exchange rate basically stable in 2017, estimating that the value of
the yuan largely in line with fundamentals.
The IMF executive directors have emphasized the importance of continue to rein
in credit growth. They stress that should continue to tighten the macro
financial policy, at the same time dilute growth targets. They should agree, we
will continue to implement the financial regulatory reform, inhibiting
household borrowing, and controls the budget of local government investment,
these measures will help to achieve more sustainable economic growth.