The International Monetary Fund (IMF) chief on Tuesday warned China of a medium-term risk to its economy owing to credit intensive growth and encouraged it to continue its structural reforms.
Christine Lagarde, who was in Beijing to attend the 1+6 Round Table Dialogue meeting said the 6.9 per cent growth in China’s GDP during the second quarter of 2017, against the 6.7 per cent during the same period of 2016, “shows clearly the strong global moment and China own commitment to take properly policies”, reports Efe news.
The 1+6 Round Table Dialogue comprises the IMF, World Bank, International Labour Organisation, World Trade Organisation, Organisation for Economic Co-operation and Development and the Financial Stability Board,
However, Lagarde also warned it was observed that “the medium-term risks increase, especially as a result of a credit intensive growth”, and urged Chinese authorities “to continue with reforms taking advantages of the solid economic growth”, while “focusing more on the quality and stability of the growth than the quantity”.
Meanwhile, Chinese Prime Minister Li Keqiang said Beijing was aware of the risks facing its economy and was convinced of being able to address them successfully.
He also stressed that the best way to cope with the present challenges and difficulties would be through the promotion of a free market.
Lagarde had warned that although the global economic situation has been at its best over the last 10 years, it was still highly susceptible to policy uncertainties and the threat of protectionism.
She also advocated multi-lateralism and the adoption of fiscal, monetary and structural reforms by all economies to make way for a more inclusive and sustainable economy.