China's economy to rebound in second half: IMF

BEIJING: China's economy will rebound in the second half of 2012 to
achieve annual growth of eight percent as government policies to spur
growth take effect, the International Monetary Fund said Wednesday.
"Growth
is expected to bottom out in the second quarter, and then accelerate in
the second half of the year," the IMF said in an annual report on
China's economy, predicting China's economy would expand by 8.5 percent
in 2013.
The Fund noted that Chinese authorities, whose views
are included in the report, said they had been pursuing policies to
achieve a more sustainable pace of economic growth.
"This
managed slowdown, however, has run into stronger-than-anticipated
headwinds from the worsening of the euro area crisis," the IMF said.
"Measures
to support growth are now being given more prominence and the
authorities are confident that growth will be at least 7.5 percent this
year."
China's slowing economy has prompted authorities to slash
interest rates and loosen requirements for the amount of reserves banks
must maintain as ways to spur lending and boost activity.
Growth
in the world's second-largest economy slowed to a more than three-year
low of 7.6 percent in the second quarter, marking the sixth straight
three-month period in which it had weakened.
The
Washington-based IMF said the projection, reached in consultation with
Chinese authorities, was based on the premise that China maintains
policies aimed at such a result.
It cited the ongoing eurozone sovereign debt crisis as the biggest external risk facing China's economy.
"The
authorities were concerned about the external outlook, especially the
risk of a worsening of the euro area crisis and the lack, so far, of a
sufficiently strong policy response within Europe," the IMF said.
Chinese leaders have repeatedly expressed concern over the weakening economy and vowed to take further measures.
Premier Wen Jiabao has called stabilising growth the government's top priority. - AFP