by Colleen Howe and Jing Xu
BEIJING (Reuters) – China must “reinvent itself” with economic policies to speed up the resolution of the property market crisis and boost domestic consumption and productivity, International Monetary Fund (IMF) Managing Director Kristalina said on Sunday Georgieva.
“China faces a crossroads: build on policies that have worked in the past or reinvent itself for a new era of high-quality growth,” she said at the China Development Forum on Sunday. China which brings together senior Chinese officials and international business leaders, such as Apple CEO Tim Cook.
The Chinese government has set a gross domestic product (GDP) growth target of around 5% for 2024 and has committed to a series of measures to support the economy, but the IMF calls for going further by focusing more policies towards the consumer.
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“One of the main characteristics of quality growth will have to be greater dependence on domestic consumption,” said Kristalina Georgieva. “To do this, we must stimulate the purchasing power of individuals and families.”
China must in particular take “decisive” measures to complete unfinished housing left by bankrupt developers and to reduce the risks linked to the debt of local authorities, added the director of the IMF.
(Reporting by Xu Jing, Qiaoyi Li, Colleen Howe and Joe Cash in Beijing, written by Kevin Krolicki, Blandine Hénault for the French version)
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