Arab Today, arab today imf warns of disorderly correction if china reform slows
Last Updated : GMT 00:38:43
Arab Today, arab today
Arab Today, arab today

Satisfaction with transition to market-oriented economy

IMF warns of 'disorderly correction' if China reform slows

Arab Today, arab today

Arab Today, arab today IMF warns of 'disorderly correction' if China reform slows

Boats pass by the skyline of the Lujiazui Financial District in Shanghai
Washington - Arab Today

The IMF warned that China, the world's second-largest economy, could face a "disorderly correction" followed by slower growth if its reform program slows.

Presenting its annual assessment of China, the International Monetary Fund on Friday expressed satisfaction with its transition to a more market-oriented economy.

But it also warned Beijing to stay the course, despite recent warning signs.

"The faster the progress, the sooner the benefits will materialize," said Markus Rodlauer, head of the IMF mission to China and one of the authors of the review.

The report forecasts 6.8 percent growth for this year, relatively low by recent Chinese standards but this was expected as Beijing transitions to a more sustainable model.

It also said the yuan is no longer undervalued, despite Beijing ordering this week's steep fall against the dollar, noting it was still well up over the year.  

The IMF was also sanguine about the recent turmoil on Chinese stock markets, which it said does not threaten the wider economy.

But it urged Beijing to quickly unwind its massive state intervention to support falling share prices, and warned that the true risk would come from slowing reform.

"Insufficient progress in containing vulnerabilities and advancing structural reforms continues to pose the biggest risk to the outlook," Rodlauer warned.

"If there were going ahead insufficient progress that would be the biggest risk that, if realize, could result over the medium term in a disorderly correction and a protracted period of slower growth."

Markets and some world governments have been alarmed by this week's decision by China to devalue the yuan, but the IMF said it should be seen as a step toward a more market-oriented exchange rate approach.

"The exact impact will depend on how the new mechanism is implemented going forward," Rodlauer told reporters.

"China can and should aim to achieve a full floating exchange rate system within two to three years."

Asked whether the yuan's fall would help China's in its quest to see the yuan become one of the reserve currencies in the IMF's SDR (special drawing rights) basket, Rodlauer was cautious.

"The announced change has no direct impact on the criteria used in determining the composition of the basket," he said, calling for a "more market-oriented" rate.

China sees gaining SDR status for the yuan as a recognition of its role in the world financial system as a reserve currency on a par with the dollar or the euro.
Source: AFP

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today imf warns of disorderly correction if china reform slows Arab Today, arab today imf warns of disorderly correction if china reform slows

 



Arab Today, arab today
Arab Today, arab today US, Britain ban laptops on flights

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today Hezbollah commander killed by own men

GMT 07:43 2017 Wednesday ,22 March

Hezbollah commander killed by own men
Arab Today, arab today Tunisian media host praises her new experience

GMT 12:35 2017 Wednesday ,15 March

Tunisian media host praises her new experience
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemeni official warns education is under threat

GMT 12:03 2017 Tuesday ,14 March

Yemeni official warns education is under threat
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Palestinian police wage war

GMT 07:53 2017 Friday ,17 March

Palestinian police wage war
Arab Today, arab today Dalia Mustafa believes in the presence of ghosts

GMT 07:39 2017 Monday ,20 March

Dalia Mustafa believes in the presence of ghosts
Arab Today, arab today Mexico threatens to ditch US corn imports

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection

GMT 16:41 2017 Monday ,20 March

Preserving the memory of glaciers

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 14:17 2017 Monday ,20 March

Cholesterol-slashing drug not impair brain

GMT 17:08 2017 Saturday ,18 March

Reveals secrets of tourism flights to space

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 15:42 2017 Saturday ,18 March

HTC U Play now available in KSA

GMT 22:39 2017 Thursday ,09 March

Zuhair Murad presents his new collection "Resorts"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday