The International Monetary Fund (IMF) lowered growth forecasts for China for this year, where the fund expects China to expand 8.25% now, down from the previous forecast of 9.0%, due to the expected weakening exports and as inflation is projected to ease further.
The IMF explained that China could pick up next year, where despite the expected slowdown; China still has room to grow and expand. The fund expects China to grow 8.75% in 2013.
The IMF also suggested that since inflation has eased to comfortable levels, authorities should move now and supply the economy with modest additional credit.
The upside pressures forced on the Yuan has eased recently, where the speed of foreign reserve accumulation declined as the trade surplus narrowed on less global demand, the IMF said.