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.