Downbeat comments from the IMF on China: reforms needed, ‘trouble’, ‘failure’

International Monetary Fund Managing Director Kristalina Georgieva:

China’s stimulus measures are ‘in the right direction’ but structural reforms are needed to drive domestic consumption.China should not ‘rely on some miracle’ that would allow exports to keep driving growth with its massive size.China faces ‘trouble’ if it tries to stick to an export-led growth model, with more trade tensions and slower growth.Failure to shift the economic model toward consumption risks medium-term annual growth falling below 4%.China should focus on boosting consumer confidence, creating a social protection system, and developing the education and health sectors.

For once the IMF seem to know what’s going on.

This article was written by Eamonn Sheridan at www.forexlive.com.