China economic outlook uncertain, says IMF

BEIJING: China’s economic outlook is uncertain with corporate debt and an opaque financial sector contributing to looming vulnerabilities, an International Monetary Fund said. David Lipton, first deputy MD at the IMF, said the near-term growth outlook in the world’s second-largest economy had become more buoyant because of recent policy support but warned of potential pitfalls ahead. “The medium-term outlook is more uncertain due to rapidly rising credit, structural excess capacity, and the increasingly large, opaque, and interconnected financial sector,” he said.

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