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IMF Says Chinese Economy to Grow 7.5 Percent in 2001
China's near-term economic prospects remained favorable although the external slowdown would likely dampen the country's growth somewhat, the International Monetary Fund (IMF) said Friday.
The country's real gross domestic product (GDP) was forecast to grow 7.5 percent this year, down slightly from the 8 percent growth last year, the IMF said in its annual review of the Chinese economy.
Inflation will continue to be under control. Consumer prices are projected to increase by around 1 percent, mainly on account of rising services prices.
"Executive directors (of the IMF) commended the authorities for China's outstanding recent economic performance, with robust growth, easing deflationary pressures, and a strong external position," the IMF said.
"Looking ahead, although the external slowdown would likely dampen growth somewhat, they considered that the near-term economic prospects remained favorable," it added.
But IMF directors said the Chinese authorities face major challenges from the unfinished reform agenda, especially on the reforms of the financial sector and the state-owned enterprises.
"Accordingly, they welcomed the authorities' intention to accelerate reforms to ensure sustained rapid growth and prepare the economy for increased global competition after WTO accession," the report said.
The IMF said China's WTO accession would bring not only further economic progress in China but also opportunities for the rest of the world.
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