IMF’s Lagarde Says China Slowdown a Normal Transition

October 9, 2015 Share Print 0

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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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.