06 Feb '12, 9pm

IMF sees European debt clouds over China: BEIJING - China's economic growth will be cut almost in half if Europe...

BEIJING - China's economic growth will be cut almost in half if Europe's debt crisis worsens, a scenario that would warrant significant government stimulus, the International Monetary Fund (IMF) said yesterday. The IMF forecast comes a day after Singapore's Prime Minister Lee Hsien Loong warned that the world's second-largest economy might face a "rough landing". Based on the IMF's "downside" forecast for the global economy, China's growth could drop by as much as 4 percentage points from the fund's current projection, which is for 8.2 per cent this year, the organisation said in a report released yesterday in Beijing. The outlook expands on the IMF's warning last month that the world could plunge into another recession if Europe's woes deepen. Chinese Premier Wen Jiabao reiterated last week his government will "fine-tune" policies to support growth amid Europe's debt cris...

Full article: http://www.todayonline.com/Business/EDC120207-0000052/IMF...

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