BEIJING (Reuters) – China may need more fiscal stimulus if trade tensions with the United States deepen, jeopardizing economic and financial stability, the International Monetary Fund said on Friday.
Washington – .. According to Reuters, the Board of Directors of the IMF in its annual assessment of China's economic policies that the measures announced by Beijing are sufficient to stabilize the country's economic growth in 2019 provided that there are no further increases in tariffs.
"Directors agreed that if further escalation in trade tensions threatens economic and financial stability, additional stimulus measures, especially in fiscal, will be necessary and should be targeted," the IMF said in a statement.
IMF managers called for more flexibility and transparency in China's exchange rate policies, and some urged Beijing to disclose its interventions in the currency market.
China should open more sectors to foreign competition to make its economy better positioned to deal with trade pressures, an IMF official said.
He said the Chinese yuan is not valued at levels significantly above or below its real value and is in line with economic fundamentals.
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