The International Monetary Fund (IMF) raised the second time this year its forecast for economic growth in China for 2017, reported Bloomberg. The IMF warned that still needed deep reforms to escape from the expansion generated by the accumulation of debts.
Second-largest economy will expand by 6.7% in 2017, expects the IMF. The forecast for April was 6.6 percent, while that from January – 6.5 percent.
It is unusual Fund to revise its fixed outside reports on the global economy, says Bloomberg. But experts note that the strong first quarter was not fully reflected in previous analyzes. Deputy Managing Director David Lipton said China should take advantage of the current momentum to push through reforms.
“While some short-term risks fading, the progress of reforms must be accelerated to ensure medium-term stability and to deal with other risks – namely the current trajectory of the economy lead to a sharp correction,” says Lipton. “Critical to start now, when growth is strong and buffers – enough to ease the transition,” he said.
This year China refuted a number of concerns with the strong first quarter growth, although economists foresee slower expansion in the second half. Still expect to achieve the goal of 6.5% annual growth.
Growth in industrial production in China remained unchanged on an annual basis in May after a strong start to the year, reports MarketWatch.
Industrial production, which is considered a rough indicator of economic growth as a whole, grows by 6.5% in May – the same rate as in April, according to data of the National Statistical Service. The increase is slightly above the median forecast for 6.4 percent growth in the 11 economists surveyed by the Wall Street Journal.
On a monthly basis, industrial production growth slowed from 0.56 percent in April to 0.51 percent in May.
Investments in fixed assets outside rural areas in China grow by 8.6 percent in the first five months of the year compared to the same period last year. During the period January-April increase amounted to 8.9%.
Investments in fixed assets are monitored closely as an indicator of construction activity and the latest figures are slightly below expectations for a 9 percent growth.
Retail sales grew by 10.7% yoy in May, the rate stays the same as in April. The forecast was for 10.8% growth. On a monthly basis the growth in retail sales accelerated from 0.79% in April to 0.86 percent in May.
