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Sunday Papers

The Sunday Paper – The IMF’s Annual China Report

Once a year the IMF send a team to talk with policy makers in China to assess the economy, analyze the progress of reform, and offer suggestions that could help planners achieve objectives. They’re kind enough then to share findings with the rest of us.

This year’s report was published last Thursday, July 26th and is overall a positive assessment. The report is packed with useful charts and they’ve pulled the six best which you can access via this link Six Charts.

In summary they find:

Improved credit efficiency

Economic momentum remaining strong

Reduced capital outflows and lower exchange rate pressure

Financial sector de-risking accelerating

Steel, coal and housing capacity/inventory further reduced

Rebalancing continuing

Credit growth further reined in

The key recommendations are; monetary policy needs some tightening (their Chinese contacts don’t agree monetary policy is particularly accommodating) and openness must continue to be fostered. Risks are though, it should in fairness also be noted, mostly to the downside [!?].

In addition to the Top-6 there’s a blizzard of helpful charts that start on P34 of the report which you might just want to fast forward to. Here’s my favorite..

 

 

 

 

 

 

You can access the full report via this link IMF Annual China Report.

Happy Sunday.

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