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IMF Resident Representative Office in the People's Republic of China
People's Republic of China and the IMF |
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IMF World Economic Outlook Projections for China—April 2003 In China, real GDP grew by 8 percent in 2002. Strong export growth has been underpinned by China's entry into the WTO, more active private sector participation in export activities, and the transfer of foreign production facilities to China, which has also boosted investment spending. Imports have grown strongly, providing a fillip to other regional economies; foreign direct investment has accelerated; and reserves increased by $76 billion in 2002 (the largest contributor to the $170 billion reserve accumulation among emerging Asian countries during the year). China's need to facilitate adjustment in the face of ongoing structural change suggests that a gradual move toward a more flexible exchange rate regime is warranted, particularly in light of its strong external position. Meanwhile, the modest deflationary pressures evident since late 2001 have recently eased. Fiscal policy has been supportive of economic activity, but in view of the large contingent liabilities associated with banking and pension reform and continued strong growth prospects, a start toward consolidation is needed. Bank and state-owned enterprise reform remains at the top of the structural reform agenda.
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