China's economic growth began to pick up in the second quarter of 2009 and reached an average of 9.1 percent for that year. The IMF expected the robust economic growth to continue.
The report said China's economic recovery has "significant positive spillovers" to the region and the world economy as a whole, both through increased demand for commodities and through higher imports of capital goods.
China's recovery has driven up its demand for big-item commodities such as crude oil, metals and agricultural products, which contributed to a surge in global commodity prices, it said.
On the other hand, economic recovery boosted the country's demand for imported goods, resulting in a quick decline in its current account surpluses.
The IMF said it believed that the main policy challenge Chinese authorities face now is "to calibrate the pace and sequencing of exit from the fiscal stimulus and credit expansion, while making further progress in reorienting the economy toward private consumption."
The report considered it appropriate that China maintains fiscal support for a steady resumption of private demand, while suggested a gradual phase out of the fiscal stimulus in 2011, provided the current trajectory for the economy is maintained.
The IMF also expressed its appreciations for the recent decision by China's central bank to return to the managed floating exchange rate regime, and commended the government for "its pragmatic deployment of a range of countervailing prudential measures to contain property price inflation."