IMF urges China to implement reforms to benefit the market

The International Monetary Fund (IMF) called on China to implement “a comprehensive set of market-friendly reforms” to stimulate an economy sluggish in the face of the crisis real estateweak domestic demand and high youth unemployment.

Chinese policymakers are reluctant to boost the economy with massive stimulus measures, insisting on the need to opt for growth of “high quality”.

“The transition from high-rate growth to high-quality growth is the right path” and China “is determined to do it.””IMF Managing Director Kristalina Georgieva declared on Sunday at the China Development Forum held in Beijing.

However, he warned that “this transformation will not be easy.”

According to GeorgievaBeijing must take “strong measures” to reduce the number of unfinished homes and give more room for “market-based corrections” in a heavily indebted real estate sector.

The authorities should also strengthen the “purchasing power” with measures to improve the vast social security system and promote “equality of conditions among the private businesses and public”, as foreign investors have long demanded.

China’s top leaders are optimistic. The first Minister Li Qiang declared on Sunday at the forum that Beijing “will take practical and effective measures to promote high-quality development”.

Chinese growth has been slowing for years and in March Beijing set a target of 5%, well below those that fueled the meteoric rise of its prosperity.