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IMF: China’s economic transition will benefit both China and the world

The IMF has forecasted on Tuesday that the world economy will grow at 3.2 percent in 2016 compared to its previous forecast of 3.4 percent in January.

For 2017, the global economy is expected to grow 3.5 percent, down 0.1 percentage point from the previous estimate.

The IMF also said in the lastest report there will be substantial spillover effects from China’s transition toward more sustainable growth based on consumption and services. The process, it said, will benefit both China and the world.

SOUNDBITE (ENGLISH): MAURICE OBSTFELD, IMF chief economist
“There is always room for free more transparency even more dialogue with market and we are confident that China will move over time that direction, that is one of the ways China can support the global growth. There are other ways like working on ensure smoothing domestic transition which would require a number of actions including reforming state-owned enterprises, dealing with non-performing loans, and strengthening regulatory framework.”

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