IMF hails China`s policy response to crisis

The International Monetary Fund has hailed China's policy response to the financial crisis. In its annual report that assesses China's economic policy, the organization said the quick, determined and effective policy response of Chinese authorities helped mitigate the impact of the financial crisis, and ensured China led the global recovery.

China's economic growth began to pick up in the second quarter of 2009, and reached an average of 9.1 percent for that year. The IMF expected the robust economic growth to continue. The report said China's economic recovery has "significant positive spillover effects" on the region and the world economy as a whole, both through increased demand for commodities and through higher imports of capital goods.

The IMF said the main policy challenge Chinese authorities face now is to exit fiscal stimulus and credit expansion policies, while leading the economy toward consumption.