IMF Forecasts China Growth Decline

Created: 2012-10-09 09:32 EST

Category: Business
Embed:

 

The International Monetary Fund has downgraded its growth forecast for China this year, predicting a “soft landing” for the world’s 2nd largest economy.

Today’s lowered forecast comes as the economies of the Eurozone and United States continue to be hit hard by the global economic crisis.

The IMF is expecting China’s economy to grow at 7.8% this year. Back in July, that forecast was at 8%. 

Yesterday the World Bank also slashed China’s growth outlook to 7.7%. Bert Hofman, World Bank chief economist for East Asia and the Pacific, said the country is in the midst of a “double whammy”: slowing export and  sluggish domestic demands. 

While the predicted growth figures far surpass that of most other countries, some analysts have warned that GDP figures do not give a true indication of the Chinese economy, because they are prone to manipulation and misreporting.