"In the medium term, there are tail risks of a hard landing in China, where investment spending could slow more sharply given overcapacity in a number of sectors," the report said.
The report didn't elaborate further on those risks. Chinese leaders have repeatedly stressed in recent years that they are trying to shift the economy toward a consumption-based model and break their dependence on investment for growth.
However, Chinese Premier Wen Jiabao said last week that promoting investment is currently the main priority as the government seeks to stabilize growth, an admission that long-term reform plans are being sidelined as growth slows.
Monday, July 16, 2012
IMF Lowers China Growth Forecasts, Warns of Risks - WSJ.com
IMF Lowers China Growth Forecasts, Warns of Risks - WSJ.com
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