IMF raises China 2017 growth forecast to 6.5%

The International Monetary Fund on Monday raised its forecast for China’s economic growth this year by 0.3 percentage points to 6.5%, on expectations of continued policy stimulus, the South China Morning Post reports. China’s economy grew 6.7% over the first three quarters of 2016, in line with the country’s 6.5 to 7% growth target, but risks are also increasing with growth reliant on government spending, record lending by state banks and an overheating property market. The IMF warned of risks to China’s economy of a sharp slowdown or disruptive adjustment, as the government has been slow to tackle high corporate debt, with capital outflows also potentially exacerbating pressures. China’s corporate debt has climbed to 169% of gross domestic product and international institutions have repeatedly urged Beijing to act quickly to tackle the problem in order to avoid a financial crisis.