China faces a “hard landing” before the end of the decade unless policymakers implement the vital structural reforms that will make growth sustainable over the long term, the International Monetary Fund has warned.
In its annual healthcheck of the Chinese economy, the IMF recommended that China target growth of less than 7pc next year in order to reach its goal of “transitioning to a safer and more sustainable growth path”.
The IMF urged policymakers to step up efforts to move the economy away from its over-reliance on investment and exports to drive growth and shift the balance towards consumption. It also repeated its call for China to open up its economy, allow the renminbi to move with market forces and take further steps to rein in the country’s credit boom.
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