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IMF sees positive outlook for Chinese economy

Staff Writer |
China's near-term growth outlook has improved due to recent policy support but the country needs to rein in fast credit growth, the International Monetary Fund (IMF) said.

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The Chinese economy is expected to grow 6.6 percent this year, with the inflation rate rising to 2 percent, the IMF said in a report after concluding its annual economic health check on the Chinese economy.

"We have a positive view of China's growth outlook as China continues to mobilize its very considerable resources and catches up with higher-income economies," said James Daniel, IMF mission chief for China.

"Many countries could only dream of achieving growth rates that China has and is likely to achieve, which also reflects positively on the reforms that Chinese policymakers have undertaken," said Daniel.

The IMF expected that China's economic transition will continue and will be positive overall for the global economy.

According to the report, China's internal and external imbalance is expected to fall gradually due to aging and a stronger social safety net. Household consumption is expected to continue to pick up on the back of falling household savings and rising disposable income.

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