IMF pegs China growth at 9.6; India down to 8.2 per cent

The International Monetary Fund has projected a 9.6-per cent growth for China in 2011, even as it lowered its growth forecast for India to 8.2 per cent from its earlier projection of 8.4 per cent.

In its annual World Economic Outlook report released on Tuesday, the IMF seemed to disagree with the rosy projections of India's policy makers, saying that in 2012, it expects growth to further sink to 7.8 per cent from its earlier projection of 8 per cent.

The report says fast-growing economies like India and China face increasing danger of credit and asset bubbles.

"There are mounting concerns about the potential for steep corrections in property prices and their implications," the IMF said about China, adding that that credit and asset price behaviour was disconcertingly hot in that country.

Even though the government had taken measures like increasing banks' reserve requirements and raising interest rates to fight inflation, credit growth remained high compared with the run-ups to previous credit booms and busts, it said.

Still, China along with India will continue its solid growth, despite concerns over rising oil prices and the fallout from the Japanese earthquake, according to the report.