(Yicai Global) April 24 -- The International Monetary Fund said that it will probably again increase its growth forecast for the Chinese economy after raising it in the latest World Economic Outlook.
The IMF is very likely to increase its 2017 growth estimate for China's economy given the country's strong growth momentum in the first quarter, state-run Xinhua news agency reported, citing Markus Rodlauer, deputy director of the IMF's Asia and Pacific Department.
China's economic data was surprisingly strong in the first quarter -- its gross domestic product grew 6.9 percent year-on-year, Rodlauer said at a press briefing on the Asia-Pacific region's outlook.
The IMF lifted its 2017 growth projection for the Chinese economy to 6.6 percent from January's estimate of 6.5 percent in its latest World Economic Outlook, Rodlauer said.
The IMF will probably up its forecast when it publishes a report on Article IV consultation with China in a few months, said Rodlauer. The government is working to contain housing price bubbles and control financial risks, he said.
The share of yuan-denominated assets in the total global official foreign reserves will remain at one percent, said Changyong Rhee, director of the IMF's Asia and Pacific Department. The yuan's inclusion into the Special Drawing Rights basket has prompted its use in international trade, Rhee said. The yuan has great potential as a global reserve currency, he said.
IMF members' yuan-denominated reserve holdings reached USD84.51 billion as of December last year and accounted for 1.07 percent of total reserves held by reporters of the composition of official foreign exchange reserves, IMF data released in March shows.