IMF: China's economy to grow 9.6%
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China's economy is expected to remain robust and expand by 9.6 percent in 2011, with drivers for China's growth shifting increasingly from public to private demand, predicted the International Monetary Fund (IMF) in its latest report.
"Consumption will be buttressed by rapid credit growth, supportive labor market conditions, and continued policy efforts to raise household disposable income," the IMF said in its World Economic Outlook.
The IMF also predicted China's GDP to grow by 9.5 percent in 2012.
As to the inflation outlook in China, the price pressures that started in a narrow range of food products have broadened into other items, said the IMF, forecasting the country's inflation to reach 5 percent this year.
The primary challenge for Asian policymakers is to quickly normalize the stance of fiscal and monetary policies in the region and ensure that boom-like dynamics do not get out of hand, said the IMF.
The IMF pointed out its concenrs that management of credit aggregates, used to exercise macroeconomic control, is being undermined by Chinese central bank's financial innovation and off-balance-sheet activities.
According to the IMF, the U.S. economy will grow by 2.8 and 2.9 percent in 2011 and 2012, repsectively. The Euro area is expected to expand by 1.6 percent this year and 1.8 percent next?year.
