IMF cuts China growth forecast to 6.7% in 2009

The IMF has cut its growth forecast for China’s economy to 6.7% this year from 8.5% and called upon Beijing to focus on boosting domestic demand, the South China Morning Post reported. "It implies a lot of changes – difficult changes, painful changes – in the Chinese economy," Dominique Strauss-Kahn, IMF managing director, said of the revised projection. China’s economic growth slumped to 6.8% in the fourth quarter of 2008 with exports posting a 2.8% year-on-year decline in December. Full-year GDP growth for 2008 came to 9%. Despite the various stimulus measures announced by the government, Strauss-Kahn said there was scope for doing more. He noted that the IMF has been calling for a shift from export-led growth to domestic-led growth for several months. The IMF predicts Asia-wide growth of 2.7% this year. Should the US and European economies recover, this figure could jump above 5% in 2010.