IMF: stability in inflation & unemployment despite a drop in growth of the economy
IMF: stability in inflation and unemployment despite a drop in the growth of the economy
Follow-up - the balance of News - Our estimates and our study and the statements of the International Monetary Fund experts and other experts in the currency and financial markets, agree that there is no currency war, but it is a step of China to approach the liberalization of its currency in order to join the currency of international reserves, which will be agreed upon in the Fund meetings and the World Bank basket, in September Next », Sharif Al Diwani, executive director of the Egyptian Center for Economic Studies says.
Diwani also does not see, that the price of the yuan is far from the real price, and that China devalue its currency deliberately or political purposes.
And consistent behavior PBOC «Finally» with Diwani analysis, where China has at the end of last week to sell US bonds, to provide more support for the yuan, preventing it from decline, after the Bank reduced the value of the yuan in the eleventh of this month, and as the Bank « Societe Generale »China selling bonds worth $ 106 billion, including treasury bonds during the past two weeks.
The acquisition of China from the US $ 1.48 trillion debt, which means that China will remain able to support its currency for a while.
The IMF said, China has become a less-developed economy, but safer and more sustainable, and that government reforms and global conditions will prevent the damage from the prices of goods and labor market internally.
The IMF said in its annual assessment of the Chinese economy, issued Friday before last, said that China's economic growth will continue to decline, reaching 6.8% in 2015 and 6.3% in 2016, compared to 10.6% in 2010.
This comes back down, because of the decline in the pace of private investment in the real estate sector, but the labor market will remain flexible, due to the government policy of stimulating investment in the service sector «labor-intensive».
The IMF expects experts, to stabilize the unemployment rate at 4.1%, until the end of next year, 2016, the same rate since 2010, and will be the low unemployment rate is supportive to the stability of Chinese household consumption, but low global commodity prices, high exchange rate «actual» Chinese currency about 10% this year, the inflation rate remains at low levels.
China wants to shift from an economy dependent on exports to the economy balanced between domestic demand and exports, something like the situation in the United States, according to my book.
The Fund is expected, that the overall figure rises of prices 1.5% at the end of 2015, the same figure in 2014, to rise to 1.8% at the end of 2016, compared to 4.6% at the end of 2010.
The Fund praised China's economic policies, the IMF said the statement, said that China does not depend on funded loans investments, this model, which leads to large fluctuations in the economy, as happened in the global financial crisis in the past decade, but China depends on stable investments and are interested structural reforms more What concerned with high growth rates.
China and put some restrictions on the banking activity, which led to a slowdown in the growth of borrowing rates, as I passed the budget focused on the financial stability of the economy.
But China Fund student to exert greater effort in terms of financial stability, the reform of state-owned enterprises, and flotation «effective» of the exchange rate, as the Chinese government has encouraged the Fund to continue to improve the private financial data "./ ended 29 data quality