IMF’s Lagarde Says China Slowdown a Normal Transition

The head of the International Monetary Fund, Christine Lagarde, has said the outlook for China’s economy is not all “doom and gloom”.

“I would say that it’s a recovery that is decelerating a bit,” she told the BBC, but said it was expected to gain momentum next year.

“We are seeing massive transitions at the moment,” she said.

After double-digit growth for decades, China’s economy slowed to 7.4% last year.

The government has said it expected growth to slow further to about 7% this year.

However, the IMF has forecast growth of just 6.8%.

Ms Lagarde told the BBC that changes around the world were producing new situations, including emerging market economies having to cope with much lower commodity prices.

“Whether you look at China transitioning from one growth model to the other, from one exchange currency method to another … we are having to adjust as a result.”

via BBC

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