IMF Forecasts Faster Chinese Growth as Debt Rises

The video discusses China's GDP growth, highlighting the IMF's forecast of 6.4% average growth from 2017 to 2020. However, this growth comes with increased debt levels, projected to reach 300% of GDP by 2022. The Chinese government, led by President Xi, is prioritizing a deleveraging campaign to mitigate financial risks. The IMF acknowledges China's progress towards sustainable growth but emphasizes the need for more urgent reforms, including allowing more companies to go bankrupt and improving capital allocation.

What is the significance of the drawdown in excess capacity mentioned by the IMF?

What does the IMF suggest China should do to address corporate debt?