The Fund sees China's GDP growth slowing to about 3.5% over the medium term, but this can be accelerated with economic reforms, she added.
Some analysts see growing risk that China will drift into an era of Japan-like stagnation with an aging population and slowing productivity growth.
"We expect that China's growth will slow to around 3-1/2 percent against the backdrop of demographic headwinds and slowing productivity growth," Kozack said.
"But we also think that higher growth over the medium term is within reach for China.
China should seize the opportunity to rebalance its economy through short-term macroeconomic policy support and medium term reforms."
Persons:
Julie Kozack, Kozack, David Lawder, David Gregorio Our
Organizations:
Monetary Fund, IMF, Bank, Thomson
Locations:
China, Marrakech, Morocco, COVID, Japan, Beijing