BEIJING – The International Monetary Fund chief warned China on Tuesday of a medium-term risk to its economy owing to a credit intensive growth and encouraged it to continue its structural reforms, at a press conference in Beijing.
Christine Lagarde, who was in Beijing to attend the 1+6 Round Table Dialogue meeting, including the International Monetary Fund, the World Bank, the International Labour Organization, the World Trade Organization, the Organization for Economic Co-operation and Development and the Financial Stability Board, said the 6.9 percent growth in China’s GDP during the second quarter of 2017 – against the 6.7 percent during the same period of 2016 – “shows clearly the strong global moment and China own commitment to take properly policies.”
However, she also warned it has been observed that “the medium-term risks increase, especially as a result of a credit intensive growth,” and urged Chinese authorities “to continue with reforms taking advantages of the solid economic growth,” while “focusing more on the quality and stability of the growth than the quantity.”
Meanwhile, Chinese Prime Minister Li Keqiang said Beijing is aware of the risks facing its economy – the second largest in the world – and is convinced of being able to address them successfully.
He also stressed that the best way to cope with the present challenges and difficulties would be through the promotion of a free market.
Lagarde had warned that although the global economic situation has been at its best over the last ten years, it was still highly susceptible to policy uncertainties and the threat of protectionism.
She also advocated multilateralism and the adoption of fiscal, monetary and structural reforms by all economies to make way for a more inclusive and sustainable economy.