IMF chief urges China to boost growth with ‘pro-market reforms’

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BEIJING, March 24 — The head of the International Monetary Fund today called on China to implement “a comprehensive package of pro-market reforms” to boost a sluggish economy...

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Chinese policymakers have so far resisted calls to juice the economy through massive government stimulus, instead stressing the need to pivot towards “high-quality” growth. The Bulgarian economist warned that “this transformation would not be easy”, but argued that “with a comprehensive package of pro-market reforms, China could grow considerably faster than a status quo scenario”, according to an official transcript of her speech.Beijing should take “decisive steps” to reduce the amount of unfinished housing and give more space for “market-based corrections” in the crucial but heavily indebted real-estate sector, Georgieva said.

Georgieva also pushed China to strengthen “the business environment and a level playing field between private and state-owned enterprises”, a long-standing demand of overseas business groups operating in the Asian nation.Top Chinese politicians have been outwardly bullish on the economy, with Premier Li Qiang telling Sunday’s forum that Beijing would “take practical, effective actions to promote high-quality development and inject positive energy... into the global economic recovery”.

 

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