China’s economy is looking good enough that the International Monetary Fund is raising its outlook, but the organization is doing so with a strong warning over growing debt in the world’s second-largest economy.
The IMF issued its annual review of China on Tuesday, and has revised its growth forecast to 6.7 percent for 2017, which was up from 6.2 percent. The organization also said it expects China to average 6.4 percent growth between now and 2021, versus its previous estimate of 6 percent.
Still, the organization warned that things were far from peachy.
“The growth outlook has been revised up reflecting strong momentum, a commitment to growth targets, and a recovering global economy,” the IMF said. “But this comes at the cost of further large and continuous increases in private and public debt, and thus increasing downside risks in the medium term.”
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