IMF raises its growth outlook for China, but warns of dangers ahead

The IMF released its latest World Economic Outlook (WEO) this week. For the global economy, the April 2017 forecast remains basically unchanged with the global economy expected to grow by about 3.5 % p.a. in both 2017 and 2018. The IMF slightly raised its forecast for Chinese GDP growth to 6.6 % this year and 6.2 % in 2018. The strong growth outlook for China assumes that the current debt-fuelled policy support will remain in place as China seeks to meet current official growth targets. However, the IMF warns that China's current policies encourage inefficient use of resources and raise the risk of disruptive adjustment in the medium term. The IMF expects the Russian economy to grow by 1.4 % p.a. this year and next, which is slightly higher than its January forecast.