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IMF raises China growth outlook

BEIJING (AP) -- The International Monetary Fund has raised its economic growth outlook for China this year by 0.3 percentage points to 7.5 percent and said Beijing needs to make more progress on promised reforms.

Monday's forecast might help reassure investors who worry China's economy is slowing so abruptly that growth might fall short of the ruling Communist Party's target of 7.5 percent this year.

The IMF said Beijing needs to make more progress in rebalancing the economy toward self-sustaining growth based on domestic consumption and away from reliance on investment.

"There are some burgeoning signs that consumption is set to play a larger role in the economy and efforts to cool down credit growth, raise the cost of capital, and dampen investment growth should continue," the IMF said in a report.