China’s economic performance is improving and the government is gradually shifting to a more “flexible” system of economic management, according to a new report from the International Monetary Fund.
The report, which was released Thursday, is based on interviews with more than 400 Chinese officials and economists over the past three years.
China’s performance is the best among the world’s major economies.
But the report warns that the slow pace of economic growth has made it hard for the country to sustain economic growth beyond 2020.
It also warns that Beijing needs to make reforms to the economy and its political system in order to improve the quality of life and reduce poverty.
The IMF’s new report, The Global Rise and Fall of China’s Economy, looks at China’s progress on five key indicators: Gross domestic product growth, the country’s rate of economic expansion, the size of the economy, the rate of growth in investment and trade, the level of investment and the rate at which Chinese firms export.
It is the latest in a series of IMF reports that track China’s development and challenges over the last few years.
China is now on track to achieve gross domestic product of 3.2 percent in 2020.
That would be nearly double the 2.3 percent it reached in 2010 and the best performance in the past five years, the IMF said.
The IMF expects China’s GDP to expand at about 2.5 percent a year over the next decade, up from 1.5 to 2.6 percent in the current decade.
“The rapid pace of growth and the substantial improvement in its overall economic performance have raised hopes among investors and policy makers for a positive impact on the outlook for China’s future,” the report said.
Overall, the global economy grew at a rate of 7.2 per cent in the first quarter of 2020, the fastest rate in six years.
That was a record high and marked the first growth of 7 per cent or more since the global financial crisis.
But the world economy’s overall performance slowed in the second quarter.
Growth was flat in the third quarter.
The recovery is likely to be short-lived.
In the second half of 2020 and into 2021, China’s growth will slow to 6.1 per cent and then remain flat, the report says.
The slowing pace of China economy is likely due to slowing demand for goods and services from China’s slowing economy.
Inflation is also expected to rise.
Despite the slowdown, the China economy still accounts for about one-third of global output and about three-quarters of its exports, according the IMF.
China also has the world largest reserves of natural gas and crude oil, and exports about $2 trillion worth of those products annually.