China Daily reported that the International Monetary Fund has lowered its estimate for China's growth for this year and the next, reflecting domestic tightening policies and a pessimistic outlook for the global recovery.

IMF has just released its September 2001 edition of its World Economic Outlook.

The forecast for China's GDP growth this year was cut to 9.5%, compared with the June estimate of 9.6%.

The forecast for 2012 was lowered to 9% from the previous 9.5%.

The lower forecast is based on the ongoing policy of tightening and decreasing external demand, combined with decelerating investment as the fiscal stimulus unwinds, the report said.

Mr Olivier Blanchard chief economist of IMF said “The global economic climate has become much more uncertain because of slow recovery in advanced economies and worries about debt problems in many countries.”

As part of the effort to rebalance the global economy, Mr Blanchard urged China and other emerging economies, which have large current account surpluses, to implement plans to boost domestic demand as fast as possible.

He said “Only with this global rebalancing can we hope for stronger growth in advanced economies and, by implication, for the rest of the world,”

(Sourced from China Daily)