NEW YORK (TheStreet) -- So are you a 7.5% China growth person or a 7% China growth person?
It seems like a high-quality problem for China to have.
It is very easy to become obsessed with the precise level of GDP growth in China and write commentary based on the direction of estimates, particularly because China's current five year economic plan -- which runs until 2015 -- is based on an assumption of 7% annual growth.
What increasingly matters for China, however, is what is happening underneath the headline number.
All economies need to get stronger and more efficient all the time. Economists talk about something called "supply-side reform," which basically means ensuring workers, businesses and even government can accomplish more via more education or training, lower taxes or even a shrinkage in the size and influence of government. Supply-side reform is hard enough in America, but the challenge in China is much larger given where its economy is coming from.
And this leads us to the key insight of the report from the International Monetary Fund.
The Chinese government has proved itself very adept at boosting the local economy if required, but it has tended to do this in two ways: boosting supply in the housing market or easing credit conditions.
It could quite easily use these tools again and be successful at boosting short-term growth to more than 7%.