(Yicai Global) Oct. 16 -- China's proactive fiscal and monetary policies, implemented to aid recovery following the 2008 financial crisis, led to a sharp increase in the proportion of China's debt to gross domestic product, and the country should now look to reduce the related leverage rate, Zhou Xiaochun, head of the country's central bank, the People's Bank of China, said in a speech on China's economic outlook at the G30 International Banking Seminar in Washington yesterday.

China has embarked on a deleveraging course in terms of money supply and credit since the beginning of the year, with growth in supply falling to less than 9 percent, he said. The overall leverage rate has begun to decline, and although the magnitude remains small, a trend has been formed, Zhou added.

China's economic growth slowed to 6.7 percent last year, down from the 8 percent seen in 2012. However, momentum has rebounded this year with annual GDP growth reaching 6.9 percent in the first six months of the year. Zhou expects this growth to increase to 7 percent in the second half.

The country's imports and exports have performed well this year, with its trade surplus falling 20 percent annually to USD 400 billion. Imports, particularly in the service sector, grew rapidly. The proportion of current account surplus to GDP is expected to fall to 1.2 percent this year.

China's imbalance related to international payments is low compared with other countries, Zhou added.