From an earlier forecast of 7.3 percent, the International Monetary Fund (IMF) said Friday it has trimmed its China economic growth forecast for 2015 to about 7 percent, a figure lower than the government's target of about 7.5 percent.

In an announcement in Beijing, the IMF said it has lowered its growth projection for China next year to 7 percent, which IMF first deputy MD David Lipton said was a realistic projection.

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However, Lipton warned that China will need to carry out its promise of extensive financial reforms in order to achieve the economic growth of 7 percent and that the government must avoid stimulus measures and instead focus on curtailing financial risks.

"Beijing must keep its word on implementing extensive financial reforms, at it promised to, that will correct imbalances," said Lipton.

Among the imbalances that the Chinese government will have to deal with is the moderately undervalued local currency, the yuan. The IMF said it is about time for China to free its interest rates market although some senior Chinese officials said China is not yet ready for such a move.

Lipton also stressed that the IMF is against further stimulus measures in China at this point and stressed that China should instead concentrate on curtailing financial risks.

He stressed that tax and fiscal reforms, insurance for deposits and a removal of state control over deposit rates are among the needed changes that China should implement.

"We do not suggest stimulus at this point," Lipton said, when asked if the Chinese government should do more to support economic growth.

The central government earlier announced a series of stimulus measures after the economy got off to a weak start this year. Business surveys also showed that activity may be starting to stabilize but with no sign of a solid, broader recovery.

The Chinese government has set a target of 7.5 percent economic growth this year and next year, a figure described by bankers and economists as hard to achieve due to the current economic slowdown.

TagsChina 2015 GDP Growth, IMF China growth forecast, IMF China economy forecast