IMF Hopes to Call on China If Crisis Begins to Worsen
The International Monetary Fund has lowered its 2012 growth outlook on China from 9 percent to 8.2 percent and warned of another 4 percent slash if Europe’s debt crisis worsens and drags the world’s economy into a recession.
The IMF said China, acting in its own interest and the global economy’s, should implement a significant financial package to help the European Union.
The Fund highlighted the financial package should be executed through both the central and local governments and may entail such things as cuts in consumption taxes, subsidies for consumers, corporate incentives to expand investment, fiscal support for smaller firms and more spending on low-cost housing social safety nets, reports Reuters. The IMF believes these measures could add up to 3 percent of GDP.
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The IMF said China, acting in its own interest and the global economy’s, should implement a significant financial package to help the European Union.
The Fund highlighted the financial package should be executed through both the central and local governments and may entail such things as cuts in consumption taxes, subsidies for consumers, corporate incentives to expand investment, fiscal support for smaller firms and more spending on low-cost housing social safety nets, reports Reuters. The IMF believes these measures could add up to 3 percent of GDP.
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