Chinese economy normalising but stark risks remain: IMF

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'What started as a series of sudden stops in economic activity, quickly cascaded through the economy and morphed into a full-blown shock simultaneously impeding supply and demand.'

But it said China's response thus far showed that the right policies made a difference in fighting the disease and mitigating its impact, albeit with tough economic tradeoffs.

Helge Berger, the IMF's China mission chief and lead author of the blog, said fiscal policy had an important role to play as Chinese authorities worked to mitigate economic shock and support the recovery. "While it is too early to speak about some of the proposals being discussed, it will be helpful to provide a mix of measures that is on-budget well-targeted to help those most affected by the current crisis," Mr Berger told Reuters.

 

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