International Monetary Fund President GoloreKieva said it would call on China to turn the economic growth model to focus on boosting domestic consumption.
Kristalina Georgieva said in an exclusive interview with Reuters on Friday (September 15).
She said that the International Monetary Fund will convey the review information of the organization to the Chinese government in the upcoming consultation documents, including hoping that China will boost domestic consumption that will be weak, and face up to the real estate field.In trouble and local government debt, as well as other issues that drag down China and global economic growth.
Georkeva said that the International Monetary Fund will strongly urge Beijing to change its growth model and no longer rely on debt -driven infrastructure investment and real estate.
Georkeva said: "We advise China to change the policy and transfer the economic growth model to the promotion of domestic consumption, because in the current environment, more funds are invested into infrastructure construction through traditional models., Can no longer achieve results. "
She said that as European and American companies transfer the supply chain from China, the decline in the aging population and productivity of China has also" suppressed "economic growth rates.China ’s problems in the real estate field have also prompted consumers to tighten spending.
Georkiyeva said: "We expect that in the absence of structural reforms, China's mid -term economic growth will be less than 4%."
International Monetary Fund Organization 7It is estimated that China ’s economic growth in 2023 is 5%, and the economic growth in 2024 is 4.5%. It also warns that if real estate growth shrinks, economic growth may be lower than expected.
Georkyeva also said that instead of rescue the trapped real estate developers, China should invest in the building of the buyers to be delivered as scheduled to boost consumers' confidence in the real estate field.
