The International Monetary Fund on Monday raised its growth forecast for China but warned rising debt that has prompted concern about the country's finances increase the risk of a sharper slowdown. The world's second-largest economy should expand by 6.5 percent this year, the IMF said in a report. However, that growth is supported by heavy government spending and rapid expansion of credit, which "raises the risk of a sharper slowdown," the agency said. China's total debt has risen to the equivalent of 250 percent of gross domestic product, high for a developing economy. The agency said official Chinese stimulus might lead to even stronger performance than forecast, which might help boost growth for the country's trading partners.

Source: ABC News January 16, 2017 14:32 UTC