Millennium Post

China central bank confirms deceleration

According to a working paper written by a group of economists of the People's Bank of China (PBOC), the country's GDP growth is expected to slow modestly next year.

The paper has put the hey days of China's double digit growth behind.

"Real GDP growth will decelerate slightly to 7.1 per cent in 2015, reflecting partly the slowdown in real estate investment," it said.

China's GDP growth this year is estimated at 7.4 per cent, according to the group led by Ma Jun, chief economist of the PBOC's research bureau. The paper has put the inflation next year at 2.2 per cent, slightly higher than this year's estimated 2.0 per cent, state-run Xinhua news agency reported.

It said the forecasts were made based on factors like GDP growth in developed economies picking up to 2.3 per cent in 2015, falling global commodity prices and a stable world trade environment, China keeping continuity and stability in its monetary and fiscal policy, and a lack of large fluctuations in China's property market. The outlook by central bank came after a Central Economic Work Conference (CEWC) conducted by China's top leaders last week, admitting big "downward pressures" on the economy and announced reforms in nine areas to spur growth.

The meeting was held amid a string of weak economic data which stoked speculations that China may miss annual growth target.

The CEWC meet said China will accelerate reforms in nine areas next year, including capital market and market access for private banks. As part of the reforms to arrest the economic slowdown, China has announced industrial parks in three more cities. Last year, China launched the Shanghai pilot free trade zone. It was the first Free Trade Zone  (FTZ) after the Shenzhen SEZ launched 34 years ago which was considered to be a successful experiment to initiate new set of reforms.

The CEWC said China will continue targeted and structured control policies to maintain a
medium and high-speed growth and will actively adapt to the economic "new normal" of slower speed but higher quality.
Next Story
Share it