Global monetary body calls on Beijing to roll out more forceful fiscal stimulus to bolster domestic demand amid record trade surplus
“China needs to move decisively towards consumption-led growth,” Sonali Jain-Chandra, IMF mission chief for China, said in an interview with the South China Morning Post.
She added that the IMF welcomed Beijing’s focus on consumption in its 15th five-year plan proposals and the readout of December’s central economic work conference, which set the economic agenda in the year ahead.
Jain-Chandra cited a comprehensive policy package IMF staff set out in a recently published annual review of China’s economy – known as the Article IV consultation – urging more forceful fiscal stimulus to lift consumption and address strains in the property sector, alongside stronger social protection, further monetary easing and greater exchange-rate flexibility.
“Transitioning to a consumption-led growth model should be the overarching priority,” the IMF executive board said in a statement accompanying the report. “An expansionary stance should be maintained until deflationary pressures subside durably.”
Source: News - South China Morning Post
