IMF asks China to curb exports, boost consumption

The International Monetary Fund (IMF) on Wednesday urged China to make the “brave choice” of speeding up structural reform, as pressure grows on the world’s second-largest economy to shift towards a consumption-led model and curb reliance on debt-driven exports.

- JOE CASH

“China is simply too big to generate much (more) growth from exports, and continuing to depend on export-led growth risks furthering global trade tensions,” IMF Managing Director Kristalina Georgieva told a press conference concluding the Fund's regular review of the $19 trillion economy.

“It requires brave choices and determined policy action,” Georgieva added, while pressing Chinese policymakers to adopt a comprehensive macroeconomic policy package including additional fiscal stimulus and greater monetary easing, alongside targeted steps to rein in local government debt, resolve a protracted property crisis and improve social welfare provision.