01.08.2014 - The IMF has advised China to speed up reform
The International Monetary Fund said that the growth of the second world's largest economy may slow in the coming years in case the absence of significant reforms. Among the required steps according to IMF experts should be allocated the need for financial reform. Also is needed to be made a more liberal exchange rate, as well as to revise fiscal policy, especially in the field of real estate taxation.
According to IMF forecasts, in 2014, China's economy will grow by 7.4%, and in 2015 will slow to 7.1%. We recall that in 2013, GDP growth was 7.7%. Conditions of the Chinese economy have a significant impact on both the global stock markets and commodities like gold and oil. We expect a correction on the Chinese stock market by 10-15%, after which growth probably will resume.