IMF will urge China to turn to consumer -driven growth mode

(Washington Reuters) International Monetary Fund (IMF) will urge China to change the way of economic growth, boost domestic consumption, and solve the problem of dragging China's and global economic growth.

According to an exclusive interview published by Reuters on Friday (September 15), IMF President Kristalina Georgieva said that IMF will convey to the Chinese government in the forthcoming report on the forthcoming consultation report.Examination information of Chinese economic policy.

Georkeva said that the IMF will strongly urge China to change its economic growth model and no longer rely on debt -driven infrastructure investment and real estate.

She said that the Chinese government should use policy space to turn economic growth to domestic consumption -driven, because in the current environment, investing in infrastructure construction through traditional models will be difficult to achieve results.

Georkeva said that China's population aging and productivity have declined, and European and American companies have transferred the supply chain out of China, which has suppressed China's economic growth.At the same time, the sluggish real estate industry has also led to consumer control expenditure.She believes that the Chinese government should invest in real estate projects that have not been paid yet, rather than to save those real estate companies that are in trouble.

Geolkeva said: "We actually expect that if no structural reforms are carried out, China's medium -term growth rate may drop to less than 4%."

IMF predicts that China's economic growth rates will reach 5.2%and 4.5%respectively this year in July, but the IMF also warns that the actual growth rate may be lower due to the shrinking real estate industry.

She pointed out that China's economic growth accounts for about one -third of global economic growth. Its growth rate is "important to Asia and it is also important to other parts of the world."

When it comes to China's investment opportunities, Georkeva said that China's digital economy and green energy sources are still attractive to investors. It is important that the government will not over -subsidize the electric vehicle industry, leading to unfair competition.