Asia

IMF raises China growth forecast but warns on debt

The International Monetary Fund on Monday raised its growth forecast for China but warned rising debt that has prompted concern about the country's finances increase the risk of a sharper slowdown.

The world's second-largest economy should expand by 6.5 percent this year, the IMF said in a report. That is up by 0.3 percentage points from the agency's last forecast in October.

However, that growth is supported by heavy government spending and rapid expansion of credit, which "raises the risk of a sharper slowdown," the agency said.

The report adds to mounting warnings about the economic drag of debt that has soared since the 2008 global crisis as Beijing used...

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