The outflow of capital from China threatens world economy - IMF

Almaty. February 26. Silkroadnews - The outflow of capital from China will negatively affect the growth of the world economy, the head of the International Monetary Fund (IMF), Christine Lagarde, warned at the opening of two-day G20 Finance Ministers and Central Bank Governors Meeting in Shanghai, reports the Russian office of BBC.
Christine Lagarde said the IMF forecasts 6.3% growth for the Chinese economy in 2016 and also noted the need to accelerate structural reforms in China.
“The China’s leaders have long recognized the importance of structural reforms for achieving safe, inclusive, and sustainable growth. China needs to accelerate structural reforms to raise potential growth, to empower the market to play a more decisive role, to accelerate state-owned enterprise reform, and to deepen the reforms of the social security system,” - said Christine Lagarde.
According to her, every G-20 economy needs such structural reforms.
“Of course, China is not the only economy in need of structural reforms. In fact, structural reforms are fundamental for the success of every G-20 economy,” – she added.
Earlier, Zhou Xiaochuan, governor of the People’s Bank of China said there are no prerequisites for the significant depreciation of the yuan.
“China still has some monetary policy (maneuvering) space and multiple policy instruments to address possible downside risks,” - the head of the Central Bank of China said.
The Chinese economy growth slowdown caused panic in the global financial markets and contributed to a sharp drop in energy prices.
Germany’s finance minister, Wolfgang Schauble, said at the meeting in Shanghai that G20 countries need to carry out structural reforms and continue to conduct the financial regulation to reduce volatility in the markets.