IMF chief urges China to curb exports, boost consumption

BEIJING: The International Monetary Fund (IMF) on Wednesday urged China to make the “brave choice” of speeding up structural reform, as pressure grows on the world’s second-largest economy to shift towards a consumption-led model and curb reliance on debt-driven exports.

“China is simply too big to generate much (more) growth from exports, and continuing to depend on export-led growth risks furthering global trade tensions,” IMF Managing Director Kristalina Georgieva told a press conference concluding the Fund’s regular review of the $19 trillion economy.

“It requires brave choices and determined policy action,” Georgieva added, while pressing Chinese policymakers to adopt a comprehensive macroeconomic policy package including additional fiscal stimulus and greater monetary easing, alongside targeted steps to rein in local government debt, resolve a protracted property crisis and improve social welfare provision.

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