Date
24 October 2017
China's ambitious multiyear rebalancing of its economy will benefit everybody in the long run, says Christine Lagarde. Photo: CNSA
China's ambitious multiyear rebalancing of its economy will benefit everybody in the long run, says Christine Lagarde. Photo: CNSA

Everyone to benefit from China’s shift to slower growth: Lagarde

International Monetary Fund managing director Christine Lagarde said the shift of the Chinese economy toward slower growth will benefit everybody, even if the short-term impact rattles global trade, commodities and finance.

China’s moves to weaken its currency and concerns about the country’s growth sparked turbulence on markets around the world at the start of this year.

Oil prices have tumbled and are likely to stay low “for a sustained period”, Lagarde said Tuesday.

But she backed China’s strategies in the long term.

“China itself has embarked on an ambitious multiyear rebalancing of its economy, which is fine in and of itself and quite legitimate,” The Wall Street Journal quoted Lagarde as saying.

“It’s a positive endeavor that in the long run, will benefit everybody.” 

Addressing central bankers at a conference in Paris, the IMF chief said the eurozone and Japan should continue with loose monetary policy to tackle low inflation and weak growth.

Meanwhile, she said, the United States should continue a gradual normalization of monetary policy after a smooth liftoff from record low rates at the end of last year.

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RC/FL

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