IMF sees some signs of China stabilization; reforms can boost medium-term growth

The International Monetary Fund said on Thursday it is seeing some signs of stabilization in China's economy from recent data but believes it can grow at a faster pace over the medium term if it takes steps reforms its economy to rebalance growth from investment towards consumer spending.

Chief spokesperson Julie Kozack told a regular news briefing that the IMF continues to believe that China can achieve around 5% growth this year, with detailed projections due when the IMF publishes its World Economic Outlook during IMF-World Bank annual meetings in Marrakech, Morocco on Oct. 10. The Fund sees China's GDP growth slowing to about 3.5% over the medium term, but this can be accelerated with economic reforms, she added.