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Foundation solid for stable China growth: economists

Updated: Oct 12,2017 4:20 PM     Xinhua

BEIJING — China’s economy has a solid foundation for continued stable growth with an improved financial environment both at home and abroad, economists said, predicting an annual expansion of 6.8 percent for 2017.

“Although downward pressure will continue in the fourth quarter, there won’t be fundamental changes in China’s stable economic operation,” noted Bank of Communications economist Lian Ping.

Investment in infrastructure is likely to maintain steady growth, but due to restraints on funding sources and a high comparison base, further acceleration will be limited, Lian pointed out.

Property investment may slow due to government purchase restrictions, while the fourth quarter usually sees a boom in spending, a high comparison base last year could mean subdued consumption growth, according to Li Xunlei, chief economist with Zhongtai Securities.

The GDP growth rate for the third quarter is due to be released on Oct 19, and analysts largely put the figure at 6.8 percent.

Meanwhile, as prices for industrial goods rose significantly this year, nominal GDP growth will likely to accelerate to the highest since 2012, according to Lian.

The IMF raised its forecast for China’s economic growth in 2017 and 2018 on Oct 10, citing the stronger than expected performance in the first half of the year and continuous policy support.

In its latest World Economic Outlook, the IMF expected the Chinese economy to grow 6.8 percent this year and 6.5 percent next year, 0.1 percentage point higher than its previous forecast in July.

At a news conference on Oct 10, Ning Jizhe, head of the National Bureau of Statistics, struck a confident tone on the country’s economy, saying that China is sure to achieve its 6.5-percent annual economic growth target.