China should seize the day and push on with tough economic reforms, says IMF
Beijing urged to push on with important measures such as shutting ‘zombie’ enterprises after annual economic health check paints positive picture
Now is the right time for Beijing to make important economic reforms – including shutting state-owned “zombie enterprises” and cleaning up local government budgets – the International Monetary Fund’s chief China representative has said.
Alfred Schipke argued that the authorities were well-placed to act because the rebalancing of the economy was well on track and the government had adequate protections against external shocks.
In its annual check of China’s economic health, the IMF said the world’s second largest economy would “rebalance to a sustainable growth mode” while its GDP growth was projected to show only a slight decline to 5.5 per cent by 2023 from an estimated 6.6 per cent in 2018.
“The economy is doing relatively well, and reforms are progressing,” Schipke told the South China Morning Post last week.
“In the baseline scenario, things are looking relatively good … Now it’s time to continue the tough reforms.”