IMF's Kang on Downgrading China Forecast, Trade Impact, Yuan

The transcript discusses the economic growth forecast for China, highlighting the impact of US-China trade tensions. It projects a growth rate of 6.2% for 2019, moderating to 6.0% in 2020, with trade tensions posing a downside risk. The potential impact of increased tariffs is considered, suggesting a temporary stimulus might be needed. The discussion also covers the flexibility of China's exchange rate, emphasizing its role as a shock absorber and the benefits of a market-determined rate.

What is the projected growth rate for China in 2020 according to the forecast?

• 6.5%

• 6.0%

• 5.8%

• 6.2%

What is considered a significant source of uncertainty in the economic forecast?

• Domestic policy changes

• Renewed trade tensions

• Technological advancements

• Global oil prices

What could be a potential response to mitigate the impact of increased tariffs on Chinese exports?

• Increase in import duties

• Expansion of trade agreements

• Temporary stimulus measures

• Reduction in export taxes

What is the role of a flexible exchange rate according to the discussion?

• To serve as a shock absorber

• To reduce inflation

• To increase export competitiveness

• To stabilize global markets

How does a market-determined exchange rate benefit China?

• By stabilizing the currency value

• By reducing trade deficits

• By allowing more room for monetary policy

• By increasing foreign investments