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Information On Little Known Legal Loopholes July 11 William Tesillo Colombia Jersey , 2016 | Author: Linda Sullivan | Posted in Business
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by Xinhua writers Gao Pan, Jin Minmin

WASHINGTON, Aug. 16 (Xinhua) -- China's strong growth momentum is expected to help the country achieve safer and more sustainable growth over the medium and long term, a senior official at the International Monetary Fund (IMF) has said.

"The strong momentum gives room to accelerate reforms Sebastian Perez Colombia Jersey ," James Daniel, assistant director of the Asia and Pacific Department of the IMF and its mission chief for China, told Xinhua in a recent interview, adding: "Now it is time to do so."

China's economy expanded 6.9 percent in the first half of the year Santiago Arias Colombia Jersey , well above the government's yearly target of 6.5 percent, according to data released from the National Bureau of Statistics last month.

Daniel, who led a mission to China in June to conduct the annual Article IV review of the Chinese economy, said the IMF increased its outlook for China's growth rate and debt levels over the next three years Roger Martinez Colombia Jersey , and underscored the importance of monitoring China's debt risks.

"These risks must be addressed if strong growth is to be maintained at a safe manner. That requires reforms to make growth less reliant on credit, less reliant on debt, less reliant on investment," he said.

Daniel said a lot of China's reforms are underway in the right direction Robinson Zapata Colombia Jersey , noting that "overcapacity has been reduced and the framework for local governments to borrow has been improved."

He also commended China's increased focus on reducing financial stability risks and welcomed China's move to set up a new financial stability and development committee under the State Council so as to strengthen coordination on financial supervision.

Daniel said he believes that China's authorities understand the importance of taking advantage of strong growth to pursue necessary reforms, as "they intensified focus on financial stability risk since the third quarter of last year" when the economy grew stronger.

"I think once the risks of a sharp slow-down has retreated, then they indeed were more confident about addressing the risks," he said. "That's exactly the right attitude."

While controlling risks in the financial sector is important Radamel Falcao Colombia Jersey , China also needs to move to other parts of the economy to deal with debt problems and there is more work to be done, said the IMF official.

In terms of corporate debt risks, Daniel noticed that "the pace of growth of corporate debt has slowed down recently," which reflected overcapacity reduction Pedro Franco Colombia Jersey , the government's restructuring initiatives and the cyclical recovery of growth of trade and producer prices.

He suggested China continue deleveraging in the private sector and rely more on market forces to allocate credit to companies that use it more productively.

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