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Business News

IMF warns on threat to China's growth

China's soaring growth rate could be cut in half this year if Europe's debt crisis worsens significantly, the International Monetary Fund (IMF) warned yesterday.

Based on the IMF's "downside" forecast for the global economy, China's growth could drop by as much as 4 percentage points this year from its current forecast of 8.2 per cent, according to a new report from the organisation's Beijing office.

China, the world's second-biggest economy, has been cutting interest rates to fight inflation over the past 18 months but a worst-case scenario in the eurozone would warrant "significant" fiscal stimulus, the IMF said.