CLEAN : IMF raises China growth forecast urges faster reforms

The transcript discusses the rising concerns about economic growth and the need for reforms in China. It highlights projections for growth in 2017 and 2018, emphasizing the importance of transitioning from a credit-fed investment model to one that supports sustainable growth. The text also addresses the risks associated with rapid credit growth and the necessity of reforms to ensure medium-term stability. The shift from investment to consumption and the role of market forces are crucial for mitigating vulnerabilities and preventing potential crises.

What is the projected growth rate for China in 2017 according to the transcript?

• 7.7%

• 6.7%

• 5.7%

• 8.7%

Why is it critical to start economic reforms now, according to the transcript?

• Because growth is unpredictable

• Because growth is strong and buffers are sufficient

• Because growth is declining

• Because growth is weak and buffers are insufficient

What does the transcript suggest is necessary to secure medium-term stability?

• Slowing down reform progress

• Maintaining the current economic trajectory

• Increasing reliance on credit-fed investment

• Accelerating reform progress

What tends to happen when the ratio of credit to GDP rises quickly?

• Economic stability increases

• Vulnerabilities and crisis probability decrease

• Vulnerabilities and crisis probability increase

• Economic growth becomes more sustainable

What is a potential consequence of rapid credit growth mentioned in the transcript?

• Easier debt repayment

• Increased economic foundation

• Decreased chance of borrowing

• Difficulty in ensuring credit supports economic activities