IMF holds China forecast, but warns of risks from trade tension and rising credit
Beijing — The International Monetary Fund kept its forecast for China’s 2018 economic growth unchanged at 6.6% on Wednesday, but warned that overly rapid credit growth and trade frictions could pose risks for the world’s second-largest economy. China’s economy grew 6.8% in the first quarter of 2018, slightly faster than expected, buoyed by strong consumer demand and surprisingly robust property investment. In January, the IMF raised its forecast for China’s economic growth this year to 6.6% from 6.5%. Beijing in March set a full-year growth target of 6.5%. Economists expect growth to slow to 6.5% in 2018 from 6.9% in 2017, citing rising borrowing costs, tougher limits on industrial pollution and a crackdown on local government spending. China should further rein in credit growth, said James Daniel, mission chief for China and Assistant Director of the Asia-Pacific Department at the IMF. "There hasn’t been any deleveraging in the real economy. Let’s be clear on that. What has happene...
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