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IMF and OECD cut China growth forecast

IMF and OECD cut China growth forecast
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The International Monetary Fund and the Organisation for Economic Cooperation and Development have both cut their growth forecasts for China.

That adds to concerns that the world’s second-largest economy is losing momentum.

The IMF blames the weak world economy, which is having an impact on exports. It sees GDP up by by 7.75 percent this year rather than the eight percent it previously predicted.

The OECD is now talking about 7.8 percent growth – down from its previous 8.5 percent estimate.

Recent soft Chinese factory output and investment performance had already caused a number of private economists to lower their GDP estimates.

The IMF is warning that growth has become too dependent on investment spending – particularly in the property sector and by local governments.

It also believes that as a priority Beijing should rein in rapidly expanding social costs.