IMF expects China to avoid hard landing
2012-09-20 17:35:03
The International Monetary Fund is not planning "drastic" changes to its new economic forecasts for the Asia region, which will continue to be cushioned by strong growth in China.
China's economy is likely to avoid a hard landing, said Mr Masahiko Takeda, Deputy Director in the IMF's Asia and Pacific Department, although he cautioned that much depends on whether the euro zone crisis can be contained and if lawmakers in the United States can reach a resolution over major new spending cuts.
The upbeat remarks come after a string of disappointing Chinese economic data, prompting fears that the world's second-largest economy was slowing more steeply than expected.
Mr Takeda is upbeat that Beijing will meet its official target of 7.5 per cent this year as a weak external environment is offset by strong domestic factors.
"We don't think a hard landing for China is a likely scenario, so putting all those (factors) together, no drastic change in terms of our forecasts," Mr Takeda said.
The IMF is due to present new forecasts next month.
In April, it forecast regional growth at 6 per cent this year and about 6.5 per cent next year.