IMF Raises Chinese Economic Growth Outlook

Article source
ABC News

The International Monetary Fund raised its economic growth forecast for China on Monday but warned that its financial system faces risks due to the rapid expansion of debt.

The IMF's 0.3 percentage point increase to 7.5 percent in its growth outlook for China may help reassure investors who worry the world's second-largest economy might be slowing too abruptly.

The forecast is in line with the ruling Communist Party's official growth target for the year and would be the strongest for any major economy. But it is well below the double-digit levels of the past decade and might raise the risk of politically dangerous job losses.

The IMF warned that China faces the twin risks of an unexpectedly sharp slowdown and "rising vulnerabilities" in its financial system. It said both could cause repercussions for the region.

Read the full article here.