IMF warns China as Osborne gets backing on cuts

CHINA needs to take “decisive measures” to ensure its economy continues to grow amid growing domestic problems, the International Monetary Fund (IMF) said yesterday.

IMF officials said in a report that the world’s second biggest economy has grown too reliant on debt and investment driven by exports.

“A package of reforms is needed to contain the growing risks while transitioning the economy to a more consumer-based, inclusive, and environmentally-friendly growth path,” it explained.

By contrast, British chancellor George Osborne was yesterday boosted when the IMF’s directors – who represent national governments – ignored their own officials and backed his austerity agenda, saying it is required to “preserve credibility”.

But IMF officials repeated their concerns that the UK is still far away from a “strong and sustainable recovery”.

They said government spending cuts have hurt growth and recommended bringing forward planned spending on infrastructure.