IMF head Christine Lagarde slams the doom-mongers on China

Christine Lagarde has given an upbeat assessment of the ailing Chinese economy, saying the country’s economy is not all “doom and gloom”.

The head of the International Monetary Fund, who is bidding for a second term at the IMF, backed the Chinese government’s bid to move away from export-led growth towards a consumer-led economy.

China’s growth slowed to 7.4% last year while the IMF forecasts 6.8% next year following years of double-digit expansion.

“I wouldn’t say it’s doom and gloom,” Lagarde told the BBC. “I would say that it’s a recovery that is decelerating a bit and is forecast to be re-accelerating next year.”

China has started to give greater insight into its economy by managing currency-exchange rates and interest-rate changes better.

“You don’t move just overnight from being heavily controlled to being market determined,” Lagarde said.

Her remarks coincided with data from China today showing retail sales growth slowed during the country’s week-long national holiday, dubbed Golden Week.

Revenues grew by 11%, down from growth of 12.1% in the same period a year ago for the week ending October 7, according to Ministry of Commerce data.