The International Monetary Fund (IMF) on 29 May 2013 lowered its forecast for China’s economic growth at 7.75 percent for the year 2013 citing a weak world economy and exports. Earlier, it had forecasted 8 percent growth. Annual economic growth of China fell to 7.8 per cent in 2012, the slowest since 1999, because of its decreasing export demand and increasing costs, the euro-zone debt crisis and uncertainty over the US economic recovery.
China is world’s second largest economy. The IMF advised that China should put priority on reining in social financing growth, or else the country's fast credit supply may fuel inflation in future.