China subscribes to data standard to boost economic statistics

An employee welds the exterior of a vehicle along a production line at a factory in Qingdao, Shandong province Dec 1, 2014. [Photo/Agencies]

China on Wednesday subscribed to the International Monetary Fund's Special Data Dissemination Standard (SDDS), marking a major step forward for official statistics in the country, the IMF said ahead of its annual meetings.

China's adoption of the IMF standard follows many investors questioning the reliability of China's data as the country's economic growth has slowed. A surprise August devaluation of the yuan currency sent shockwaves through global markets.

"Participation in the SDDS is expected to enhance a country's availability of timely and comprehensive statistics and contribute to the pursuit of sound macroeconomic policies," the IMF said in a statement.

China's central bank, the People's Bank of China, said in a separate statement issued on its website that adopting SDDS would help uncover the real situation in the economy and provide "a timely and accurate basis" for policymaking. At the same time, it will help "enhance the level of China’s participation in global economic cooperation".

China's policymakers should forge ahead with structural reforms to put the world's second-largest economy on a more sustainable footing, even as growth is likely to slow further to 6.3 percent in 2016, the IMF said on Tuesday.

The IMF expects China's growth to slow to 6.8 percent this year from 7.3 percent in 2014, and weaken further in 2016, maintaining its existing forecasts.