IMF warns on China’s credit fueled recovery, upgrades 2017 GDP forecast

The International Monetary Fund (IMF) revised China’s 2017 GDP forecast to 6.5%, which is 0.3 percentage points higher than their October forecast.

However, the Fund warned that China’s credit fueled recovery could only end up in deeper problems.

“Continued reliance on policy measures, with rapid expansion of credit and low progress in addressing corporate debt, especially in hardening the budget constraints of state-owned enterprises, raises the risk of a sharper slowdown or a disruptive adjustment”, the IMF said.