The IMF said it now expects China to post 6.8 percent growth in 2017 and 6.5 percent next year, up from previous projections of 6.7 percent and 6.4 percent respectively

Beijing (AFP) - The International Monetary Fund raised its growth forecast for China on Tuesday but again warned of risks stemming from the build-up of debt in the world’s second largest economy.

The IMF said it now expects China to post 6.8 percent growth in 2017 and 6.5 percent next year, up from previous projections of 6.7 percent and 6.4 percent respectively.

In raising the growth targets, the fund said it expects authorities to maintain a high level of investment-fuelled growth “to meet their target of doubling real GDP between 2010 and 2020”.

The uptick in growth will result in greater debt levels over the long term, the IMF said in a report, raising the prospect of a “sharp growth slowdown in China”.

The IMF figures give President Xi Jinping a boost but also a warning as he prepares to accept a second five-year term as general secretary of the Communist Party at a major congress next week.