Lagarde says China expected to gain momentum next year

China’s economy is not all “doom and gloom” despite its slowdown, according to the International Monetary Fund’s chief.

Christine Lagarde told the BBC that the world’s second largest economy is seeing some massive transitions in order to cope with lower commodity prices.

"Whether you look at China transitioning from one growth model to the other, from one exchange currency method to another...we are having to adjust as a result," she said.

China's economy slowed to 7.4% last year, ending decades of double digit growth. The government has forecast growth to slow further to about 7% this year while the IMF has estimated growth of just 6.8%.

However, Lagarde didn't seem too worried. "I would say that it's a recovery that is decelerating a bit," she said, adding that it was expected to gain momentum next year.

Lagarde applauded China’s efforts to shift from an export-led economy to a consumer led one as well as its move to better manage its currency exchange rate and interest rate movements. She expects China’s government will relay more about what was going on in its economy to the rest of the world "over the course of time".

"You don't move just overnight from being heavily controlled to being market determined, with massive market expectations that suddenly the situation should be the same across the world," Lagarde said.

"It just doesn't happen that way."