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| IMF: China Outlook Remains Favorable  China's economic outlook remains favorable with only a slight slowing in growth expected this year, and it will likely need to tighten monetary policy further, the International Monetary Fund said in a routine assessment released Monday. "China's prospects for the future remain favorable, provided that the risks and challenges faced by the country are addressed, " according to an IMF executive board assessment following consultations with Chinese authorities that concluded July 31. IMF directors "stressed that greater exchange rate flexibility is needed to enable the People's Bank of China to use its monetary policy instruments more effectively, " it says.In the summer of 2005, China introduced a new yuan policy that has allowed the currency to appreciate about 3.9% against the U.S. dollar. It continues to face pressure to allow more appreciation to address what critics say is an unfair export-market advantage from an undervalued currency. IMF staff projections show China's real gross domestic product will slow only slightly this year to 10.0% from 10.2% last year. The latest forecast for 2006 economic growth has been revised up from the 9.5% expansion the IMF predicted in April. write your comments about the article :: © 2006 Construction News :: home page |