The head of the International Monetary Fund (IMF), Christine Lagarde, says confirmation

The head of the International Monetary Fund (IMF), Christine Lagarde, says confirmation of China’s new leadership has the effect of giving the international community greater confidence.

But it is still too early to tell how the new team will perform in terms of steering the world’s second largest economy.

The IMF managing director was speaking during a visit to Malaysia on Thursday.

Lagarde’s tour of Southeast Asia coincides with anti-austerity strikes in Europe and a once-in-a-decade leadership change in China.

Speaking to Channel NewsAsia on her first visit as IMF chief to Malaysia, Lagarde said she is glad China’s new leaders were finally officially confirmed.

Lagarde, IMF managing director, said: “I’m fairly upbeat and optimistic about Asia in general. We have a degree of uncertainty that has been removed out of China, now that the new team is confirmed.”

But Lagarde said only time will tell whether China’s new leadership will be successful in steering the world’s second largest economy.

Malaysia’s central bank governor Dr Zeti Aktar Aziz also welcomed China’s shift from an export reliant economy to one that’s more consumption based.

The IMF projects that China will grow at a pace of 8.2% next year, slightly more optimistic than China’s forecast of 7.5%.

Source AP