China right to aim to boost consumption: IMF

China is right to aim its stimulus policies at boosting domestic consumption since that will produce better quality economic growth, the International Monetary Fund said Thursday.

Beijing this week announced it had lowered its 2019 growth target to 6.0-6.5 per cent for the world's second-largest economy.

And in response to the slowing growth, amid the trade friction with the United States, policymakers said they would lower taxes, reduce fees and streamline red tape.

"The IMF's view is this will allow policymakers in China to focus on improving the quality of growth rather than maintaining a high quantity of growth," fund spokesman Gerry Rice told reporters.

"This more modulated growth rate in China is something that the IMF has actually been advocating and encouraging... for some time."
"We welcome the intention to support consumption which remains relatively low in China." He also praised the cuts to the "relatively high social security contribution rate," which penalizes employment, as well as the changes to the value-added tax, a move which "reduces inefficiencies and opportunities for tax avoidance."