WASHINGTON - A senior International Monetary Fund official said on Monday that China was taking steps to reduce property bubble risks and said it has room to add fiscal stimulus if conditions worsen.
"China can move away from its reliance on external demand and needs to build up domestic demand," said Anoop Singh, the IMF director for Asia and the Pacific at a news conference. He said Beijing was working on measures to stimulate demand.
"We don't see (a) hard-landing risk as likely," Singh added, noting property prices were moderating and sales volumes declining.
"Our sense is that these risks are being addressed and our prediction is clear: that growth will remain above 8 percent at the baseline and that if there were to be greater risks externally China has sufficient fiscal space to respond."