The International Monetary Fund faulted China¡¯s economic policies for causing waste at home and damage abroad and called for a reorientation by Beijing to embrace a model based on domestic consumer spending.
¡°Transitioning to a consumption-led growth model should be the overarching priority,¡± the IMF¡¯s executive directors said in a statement Wednesday released alongside the Washington-based lender¡¯s annual review of China¡¯s economy, known as an Article IV consultation.
In that review, IMF staff highlighted China¡¯s large current-account surplus, which has featured ¡°adverse spillovers to trading partners.¡± Some of that excess stems from exports getting a boost from ¡°real depreciation of the RMB,¡± the fund said, referring to the inflation-adjusted weakening of the renminbi, also known as the yuan.
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