IMF misreads the dynamics of debt

The International Monetary Fund recently said China's average GDP growth in the next two years is expected to be 6.4 percent- higher than the earlier forecast of 6 percent. But a higher GDP growth is expected because of "the government's reluctance to rein in 'dangerous' levels of debt", the IMF said while also predicting China's growth will be 6.7 percent this year- also higher than the earlier forecast.

Given its reputation and influence, it's unprofessional of the IMF to take such a long time to correct its erroneous low forecast of China's economic growth, especially because the country's economy has grown by 6.7 percent to 6.9 percent for eight quarters.

It's difficult to accurately forecast GDP growth considering the multiple and complicated variables that influence each other, but the IMF's earlier forecasts suggest it was unnecessarily pessimistic about the Chinese economy.