Hard landing unlikely for 'poorly understood' mainland: IMF chief
February 21, 2014, 12:06 am TWN
SYDNEY -- IMF chief Christine Lagarde said Thursday that China was unlikely to suffer a hard landing, describing it as a “poorly understood and poorly interpreted” economy that took a cautious approach to growth.
The International Monetary Fund expects China's economy to expand 7.5 percent in 2014, but subdued inflation and manufacturing data has fuelled concern about a slowdown in the world's second-largest economy.
A windback in stimulus by the U.S. Federal Reserve and subsequent exit of capital from the emerging economies has amplified anxieties about the global implications of such a move.
But Lagarde was upbeat on the Asian giant at a public question and answer session in Sydney Thursday before this weekend's meeting of G20 finance ministers and central bankers.
“It's very unlikely that China would have a hard landing,” Lagarde said at the session, recorded for ABC television.
“If I look at the forecast we have for China it's 7.5 percent growth. It's certainly a bit less than what they've done over the last ten years but an economy of that size and with that degree of development is bound to slow down a little bit, and we believe it's appropriate actually that they should slow down their growth.”