Slower growth in China due to Beijing's attempts at rebalancing the economy should be greeted as an encouraging sign that the world's second-largest economy is making needed adjustments, according to the International Monetary Fund. Steven Barnett, division chief in the Asia-Pacific Department of the IMF, wrote that the "current model is not sustainable" and that China's economy "is becoming more vulnerable on several fronts: surging credit, strains on local government finances and weakening balance sheets in parts of the corporate sector." The new model, Barnett wrote, will "deliver higher quality growth."

Related Summaries