IMF cuts China’s 2012 economic growth forecast to 7.8 percent

On Tuesday, October 9, the International Monetary Fund (IMF) issued its latest world economic outlook report, cutting its Chinese economic growth forecast for this year and next year respectively to 7.8 percent and 8.2 percent.

 

Predicting that the Chinese economy would rebound in the second half of this year as pro-growth policies took effect, in July this year the IMF had estimated the country’s economy would grow by 8 percent in 2012 and 8.5 percent in 2013.

 

China’s stimulus efforts have so far failed to deliver the expected boost, according to the IMF. The IMF said China has suffered from the knock-on effects of the euro zone crisis and the slow recovery of the US, leading to a slump in trade and a contraction in manufacturing activity.