China should allow its economy to slow again next year as it tries to push forward with more reforms in credit and financial areas, said the International Monetary Fund (IMF).

In its annual review of the world’s second largest economy, published last week, IMF predicted gross domestic product (GDP) in China would grow by 6.8 percent this year, slowing from a 7.4-percent growth in 2014.

“This slowdown … reflects progress in addressing vulnerabilities, including slower total social financing growth, tighter oversight of shadow banking, a correction in real estate, and a new budget law,” the report said.

“To ensure further progress in addressing vulnerabilities, GDP growth should be permitted to slow to 6 percent to 6.5 percent next year,” IMF advised. “China’s future success, like its past accomplishments, will depend on continued implementation of necessary yet often difficult macro policies and reforms,” it said.

While China needed reforms to boost its long-term and sustainable growth, including cuts in Government and corporate debts, IMF warned the authorities should not let the economy slow down too quickly.

In the first half of this year, the Chinese economy expanded by 7 percent, in line with an official target of a 7-percent growth for 2015. That rate represents the slowest economic growth since 1990.