"Growth is projected to moderate to 6.2 percent in 2019 as the planned policy stimulus partially offsets the negative impact from the US tariff hike on $200 billion of Chinese exports," the IMF said.
The Fund called on Beijing to solve tensions with Washington "through a comprehensive agreement that avoids undermining the international system."
The IMF noted that the Chinese economy is facing external headwinds and an uncertain environment. The Fund also said that rising food prices led to inflation, which is expected to remain at 2.5 percent.
Meanwhile, the Fund found progress in China’s reforms in key economic areas.
"The strengthening of financial regulations and control over off-budget local government investment has reduced the pace of debt accumulation, helping contain the build-up of risks in the financial sector," the report said. "Opening up continued, with decreases in tariffs, passage of a new foreign investment law, and revisions to the negative list for foreign investment entry."
The IMF urged China to implement further structural fiscal reforms. This policy can enhance medium-term growth.