The International Monetary Fund has said that China's recent policy support has provided a boost to the country's near-term growth outlook. The IMF said it expects that China's economic transition will continue and will be positive overall for the global economy.

Household consumption is expected to continue to pick up on the backdrop of falling household savings and rising disposable income.

The IMF also noted that the Chinese Renminbi is broadly in line with the fundamentals. The bank welcomed China's steps toward an effectively floating exchange rate regime.

The IMF also says that despite the relatively benign near-term outlook, downside risks still dominate, including rapid credit growth and slow progress on reform.