Time picks Egypt's Red Sea Mountain Trail as one of World's Greatest Places 2019    'Upskirting' abuse arrest in Spain brings calls for new laws    BREAKING: Trump presses US companies to close China operations    The Amazon is burning: 4 essential reads on Brazil's vanishing rainforest    Syrian army captures Hama rebel pocket in northwest: State media    New signings in the spotlight as Bayern Munich look to reboot    Oxlade-Chamberlain signs new long-term Liverpool deal    Japan's Kubo joins Mallorca on loan from Real Madrid    UNWHO head presents Sisi with report on Egyptian health initiatives, praises efforts in healthcare    INJAZ Egypt launches "Starting Right" program for students    Al Kenz II: Egyptian cinema's sequel mania but not in the usual sense    UK PM Johnson faces tough Brexit lunch with Macron    Italy's president wants quick political deal on new government    Banking shares push Saudi lower; other Gulf markets rise    Sisi, Egyptian ministers discuss implementing health insurance system    Cyber insurance tapping Bulgarian market    European shares dip as Fed cools further easing hopes    Contracting new coach for Egypt's football team a priority: Amr El-Ganainy    Sisi orders adopting int'l standards in relocating offices to Egypt's new capital    Egypt PM discusses criteria for exemption from health insurance system fees    Egypt garment exports rise 9% in 7 months    Oil rises after U.S. crude stocks fall , economic concerns weigh    Egypt's Nile water committee reviews trilateral negotiations on Ethiopia's GERD    Liverpool thankful to have Egyptian star Salah on his frontline: Klopp    Egypt's Baron Empain Palace to be reopen after renovation    Court sentences six to death, 41 to lifetime imprisonment violence related case    Trump says he would release Mideast peace plan after Israeli elections    ACWA Power compares 3 bids to supply production units for Luxor power station    NBE announces EGP 2.5m prizes for handball youth teams for their world achievements    What do you know about gold alloying?    Jennifer Lopez evokes Egyptian outrage post her North Coast performance    Cairo's historic Tahrir square to be renovated – PM    Unprecedented Glory: Egypt win Men's U-19 World Handball Championship    Political parties gear up for parliamentary, senate, local elections    IS claims responsibility for suicide bombing killing 63 in Afghan wedding    Al-Sisi honours Egypt's scholars on Science Day    12th National Egyptian Theatre Festival fuel up public theatre art scene    28th Citadel Festival for Music and Singing embraces attendees with international troupes    Serbian Micho to be Zamalek's new coach: Egypt's Mortada Mansour    Cairo University tops 2019 Shanghai Academic Ranking    3 sentenced to death for 2016 killing of 4 Egyptian policemen    Too early to estimate Nile's flooding volume: Irrigation Ministry    Ministry of Environment has a plan for "black clouds season"    Sudan's key opposition may nominate economist Abdalla Hamdok for prime minister    LA Opera declines details on longtime general director's investigation    Sudan opposition to nominate economist Abdalla Hamdok for prime minister: Sources    Egypt produces ‘Fraud' documentary on Muslim Brotherhood history    Photo of Egyptologist Zahi Hawass to decorate NYC's Times Square to promote tourism to Egypt    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

Lagarde: China's economic shift will be bumpy ride
Published in Albawaba on 09 - 10 - 2015

China is undergoing an "enormous" economic and financial transformation that, while anticipated by Chinese policymakers, will still create some turbulence for the global economy, IMF Managing Director Christine Lagarde said.
"China is moving, and predictably so, from an investment- driven model to a more consumption-driven model, and this is a choice, this is deliberate," Lagarde said in a Bloomberg Television interview Thursday at the International Monetary Fund's annual meeting in Lima. "It will not be without bumps on the road, but it's a good evolution and it's legitimate at that stage of development."
Lagarde, 59, cited the shift as one of several "massive" transitions facing the global economy, including the prospect the U.S. Federal Reserve will raise interest rates for the first time since 2006, and the slump in commodities prices.
Chinese policymakers are committed to moving to a more market-determined exchange rate as part of the country's economic reforms, Lagarde said.
"This is an enormous change which is difficult to absorb, difficult to manage, difficult to communicate," she said. "I do believe that the Chinese authorities understand that phenomenon, want to play by the rules, want to monitor expectations as much as they can."
Lagarde reiterated the IMF's view that the Fed has scope to leave the benchmark policy rate near zero, with inflation running below the central bank's 2 percent target. Fed officials have said their decision on when to start tightening will depend on U.S. economic data.
"What we're saying is inflation numbers have to be solid," Lagarde said, adding that the fund respects the independence of central banks. "For the moment, there's not much on that horizon, neither on inflation nor on wages."
Last week in Washington, Lagarde said the world may be destined for a long stretch of mediocre growth unless policymakers ramp up spending and guard against turbulence in emerging markets.
A slowdown in emerging markets driven by weak commodity prices forced the Washington-based fund cut its outlook this week for global growth in 2015 to 3.1 percent from a July forecast of 3.3 percent. The IMF warned this week that over-borrowing by companies has left emerging economies vulnerable to financial stress and capital outflows.
In 2015, emerging markets will see their first year of negative capital flows since 1988, as investors pull $541 billion from countries such as China and Brazil, the Institute of International Finance said in a report last week.

Clic here to read the story from its source.