China’s economic growth rate may fall “substantially below 4%” if the country’s authorities fail to implement reforms aimed at supporting domestic demand, said the head of the International Monetary Fund (IMF) Kristalina Georgieva. The main obstacle to the recovery of consumer confidence in the PRC remains the troubled real estate sector, and the government needs to take measures aimed at fixing this problem, she said at a briefing in Washington.
In addition, in response to a question from an Egyptian journalist, Georgieva said she would soon visit Egypt to discuss the terms of an $8 billion loan program.
“We are open to adjusting the Egyptian program or any other program so that it best meets the interests of the people,” she said, adding that the Egyptian government still needs to implement reforms, and the sooner the better.
Earlier, Egyptian authorities signaled that it was becoming more difficult for them to meet the conditions voiced when granting the IMF loan due to geopolitical tensions in the region. Those conditions include, among others, cuts in government spending, including subsidies on fuel, electricity and food.
