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No hard landing for Chinese economy, says IMF chief

Lagarde downplays fears weakening economy could derail growth in region

Published on Apr 4, 2014 8:28 AM
 
IMF managing director Christine Lagarde during an interview with The Straits Times at her office in Washington, DC on April 2, 2014. -- ST PHOTO: MELISSA SIM

China will see reduced growth, but there will be no hard landing for the world's second-largest economy, International Monetary Fund (IMF) managing director Christine Lagarde has said.

And while a Chinese economy losing steam and tempers rising over territorial disputes may have rattled some nerves in the region, Ms Lagarde still holds Asia as a bright spot in a global economy that is slowly turning the corner.

Speaking to The Straits Times at her office in the United States capital on Wednesday ahead of the spring meetings of IMF next week, she downplayed recent concerns that a weakening Chinese economy could derail economic growth throughout the region.

"If it was a hard landing, it would be a problem. But we don't see a hard landing. We see slightly reduced growth, sustainable and (of) better quality," she said.

 
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