IMF boosts China GDP growth forecast
ANBOUND
On June 14, David Lipton, IMF first deputy managing director forecasted that China's GDP in 2017 is expected to grow 6.7%, an increase of 0.1% compares with last year, with 6.4% of average annual growth between 2018 to 2020. Lipton said policy support, especially expansionary credit and public investment, helped China to maintain strong growth. Although some recent risks have subsided, China still needs to take the following actions: transiting from investment to consumption at faster pace; strengthening the role of market forces; implementing more sustainable macroeconomic policy combination; continuing to tighten regulation; dealing with nonfinancial sector debt; and further improving the policy framework. Lipton pointed out that the recent focus is to deal with the financial sector risk; this is essential and should be continued, even if it will cause some financial pressures and slow down the economic growth.