IMF raises China GDP growth forecast to 6.7%

The International Monetary Fund warned in its annual review of the world’s second-largest economy that China must speed up economic reforms while it still has a buffer of stable growth, the Financial Times reports. “Reform progress needs to accelerate to secure medium-term stability,” and to lower the risk of a “sharp adjustment,” the IMF said in its Article IV report on Wednesday.  However, the IMF acknowledged that “some near-term risks had receded” as a result of continuing tightening in the financial and housing markets. The IMF forecast China’s gross domestic product to grow 6.7% this year – edging up from a previous estimate of 6.6% – falling to 6.4% between 2018-20, in line with government forecasts. However, the IMF warned that steady growth required “deep reforms to transition from the current growth model that relies on credit-fed investment and debt,” according to David Lipton, IMF first deputy managing director.