IMF cuts China growth forecast

The IMF has revised its growth forecast for the Chinese economy for 2013, lowering its prediction for GDP growth to 7.75% from 8%, Reuters reported. While the forecast by the IMF is above China’s target of 7.5%, it is in line with revised revisions from major financial institutions that have put China’s projected growth below 8%. The IMF is concerned that China’s rapidly expanding social financing growth will fuel inflation and is called on China to rein it in. The organization projects inflation in China will rise to 3% by the end of 2013. It also said that the renminbi is “moderately undervalued” relative to a comparable basket of currencies.