Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ News / World/  China’s 2017 economic growth to slow to 6.5%: study
BackBack

China’s 2017 economic growth to slow to 6.5%: study

The Chinese Academy of Social Sciences also predicted that the yuan would lose another 3-5% against the dollar

China’s five-year plan for economic and social development pledged average growth of at least 6.5% a year over the 2016-2020 period. Photo: BloombergPremium
China’s five-year plan for economic and social development pledged average growth of at least 6.5% a year over the 2016-2020 period. Photo: Bloomberg

Beijing: China’s economic growth will slow to 6.5% next year and the yuan will continue falling against the dollar, a top Chinese think-tank said on Monday. The prediction follows a raft of positive data earlier this month that raised hopes of an end to the slowdown. But the economy—the world’s second largest—still “faces increasing downward pressure", the Chinese Academy of Social Sciences (CASS) warned, according to a transcript on the official china.org.cn website.

It also predicted that the yuan, currently hovering around eight-year lows—would lose another 3-5% against the dollar. The government-linked think-tank made the forecasts at an annual press conference, three days after Chinese leaders wrapped up a key economic meeting known as the Central Economics Work Conference. At the conclave, attended by president Xi Jinping, leaders vowed to fix the problems ailing the partially-planned economy, taking aim at sclerotic state-owned enterprises and property speculation that has raised fears of a massive bubble about to burst. Last year CASS predicted the economy would grow at a rate of 6.7%. So far, that prediction has been spot on: the economy expanded 6.7% for three consecutive quarters this year, the slowest pace since the global financial crisis. This year’s prediction of 6.5% plumbs the lower depths of the national goal of between 6.5-7.0%. It would be the lowest annual figure since 1990 when it clocked in at 3.9%.

Also Read: China’s economy holds ground as housing curbs start to bite

The country’s five-year plan for economic and social development pledged average growth of at least 6.5% a year over the 2016-2020 period— implying that at times it could be lower. Several factors have helped China’s economy stay on target, CASS said, including stabilisation of consumer spending growth, a pick-up in real estate investment growth, and robust infrastructure spending.

Imports and exports are forecast to decline by 9.5 and 7.2% respectively in the current year compared to 2015. Imports for November beat expectations, moving from negative to positive territory and raising hopes that dwindling growth had stabilised. China is seeking to make a difficult transition from dependence on exports and heavy industry towards consumption as the key driver of the economy, but the process is proving bumpy. Consumer spending is expected to slow from 10.0% in 2016 to 9.5% in 2017, CASS said.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 19 Dec 2016, 07:00 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App