WASHINGTON — International Monetary Fund (IMF) Managing Director Kristalina Georgieva told Reuters on Thursday (Oct 17) that China is too large to continue relying on exports to drive its economy and faces dangerously slower growth unless it shifts toward a consumer-driven economic model.

Georgieva told Reuters in an interview that China's growth could fall below four per cent in the medium term if it stays on its current path, a level "that is going to be very difficult for China. It's going to be very difficult from a social standpoint."

Speaking ahead of IMF and World Bank annual meetings in Washington, where growing trade tensions over a major flood of Chinese exports will be a hot topic, Georgieva said IMF research shows that China could grow at a significantly higher pace if it makes changes to give its consumers the confidence to spend more.

"China's at the fork in the road. If they continue with their current model, which is export-led growth, there would be trouble. Why? Because the Chinese economy has grown to a point where China's exports are no more a minor factor in global trade," Georgieva said.

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