The short-term outlook for the Chinese economy has improved following recent policy measures; but the nation has to rein in the fast growth rate of its the credit sector, said the International Monetary Fund (IMF) on Friday.

The Fund said in a report – after concluding its annual economic assessment of China – that the world’s second-largest economy is due to grow by 6.6 percent year-on-year in 2016. The figure was reported by state-run news agency Xinhua. 

The IMF expects a 2-percent inflation rate in China in 2016, according to the Xinhua report.

“We have a positive view of China’s growth outlook as China continues to mobilise its very considerable resources and catches up with higher-income economies,” James Daniel, the IMF’s China mission chief, was quoted as saying. 

“Many countries could only dream of achieving growth rates that China has and is likely to achieve; which also reflects positively on the reforms that Chinese policymakers have undertaken,” he added.

China’s leadership expects the nation’s economy to grow by between 6.5 percent and 7 percent year-on-year in 2016. The Chinese economy expanded at 6.7 percent year-on-year in the second quarter, official figures show.