(MENAFN) The International Monetary Fund (IMF) stated that due to Europe's debt crisis, China's economy is forecasted to grow to 8 percent in 2012, compared with previous prediction of 8.2 percent, reported Xinhua News.
The IMF said that China in addition to other countries must be ready to deal with any potential consequences expected to occur from the European crisis.
Furthermore, China must boost reforms to increase household income, free up the financial system, and toughen the social security system in order to achieve balanced growth.
It is worth noting that recently, China announced an interest rate cut, which will be expected to reduce the cost of financial intermediation and enable market forces to gain greater role in pricing loans.
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