Markets have been aware that the Chinese economy has been shrinking; the signs and indicators have clearly all pointed in that direction. But the International Monetary Fund will be rubber-stamping that assertion according to IMF insiders and is set to significantly reduce China’s medium term outlook for its current account surplus which has been steadily shrinking even beyond expectations. What this essentially says is that the IMF is set to recognize that China’s consumer demand is off-setting the typically export-centered side of the economy. Read more
