Newsletter

Industry News

Homepage  >   Newsletter  >  Industry News

IMF Predicts That There Will Be A Whole Scaled Economic Speeding Up This Year

Issued at:2018-08-06      Views:677   

The 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.