IMF says China's lower growth target is achievable - RTRS

According to Reuters News Agency, China's new reduced economic growth target of 6.5 percent for this year looks achievable, an International Monetary Fund spokesman said on Thursday, adding that the Fund does not see an imminent threat to China's exchange rate from capital outflows.

Key highlights (via Reuters)

"We continue to advise less focus on high GDP growth targets, and more focus on tackling excessive credit growth, hardening budget constraints on state-owned enterprises and boosting the social security system." IMF spokesman Gerry Rice said.

Asked about China's capital outflow pressures, Rice said:

"I think the capital outflow would only become a concern if it would give rise to a disorderly adjustment in the exchange rate. And we don't see such a concern warranted right now."

China has tightened capital controls to stem outflows in recent months and has sold hundreds of billions of dollars in foreign exchange reserves to help prop up the yuan's value.