IMF cuts Chinese economic growth forecast

<p>The IMF has revised downwards its predictions for Chinese growth.</p>

China's economic growth forecast has been revised downwards by the International Monetary Fund (IMF).

The IMF announced it is now expecting the world's second largest economy to expand by 7.75 per cent in 2013, which is a drop from the eight per cent it previously predicted.

China's economy grew by 7.8 per cent last year, so if the IMF's latest figures are correct this would mean the rate of growth in the Asian nation is slowing down.

IMF first deputy managing director David Lipton told reporters in Beijing that growth in China is likely to be around the 7.75 per cent mark in both 2013 and 2014.

"Chinese export growth has been, after years and years of very rapid growth, very slow because of the state of the global economy and we now are taking our projections of the global economy into effect," he said.

During a visit to Berlin earlier this week, Chinese premier Li Keqiang confirmed Germany and China are in talks about forming an economic "dream team", with the Asian nation set to give German companies access to various sectors.

Learn about the Asian markets and CFD trading at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.