IMF calms market fears over China slowdown

Lima, Peru

THE International Monetary Fund on Monday moved to calm growing anxiety over the slowdown in China's economy, saying that developments so far "provide some comfort" that the transition from export-led to domestic demand-driven growth "can be managed".

At the same time, it acknowledged on the eve of the IMF and World Bank annual meetings in Lima, Peru, that China's slowdown is having a growing impact on Asia generally, and that "vigilance must be the watchword".

The current pace of China's slowdown "remains in line with the IMF's forecast and that of the (Chinese) authorities themselves, although downside risks have increased".

China's economy "is undergoing a major transition from export-led growth to a model increasingly driven by consumption and service…