PBOC economist says China's GDP growth to slow to 7.1% in 2015
The People's Bank of China headquarters in Beijing. The world's second largest economy showed further signs of weakness last month with factory shutdowns exacerbating sluggish demand. Photo: Bloomberg
Shanghai: China is likely to see economic expansion next year decelerate to 7.1% as a slowdown in real estate investment continues.
While growth may slow, the outlook for employment and inflation remains stable, and labour-market conditions won't be a major concern, Ma Jun, chief economist of the People's Bank of China (PBOC)'s research centre, wrote in a working paper dated 12 December. The growth projection compares with the monetary authority's forecast for 7.4% expansion this year, the slowest pace since 1990.
'The downward pressure caused by the slowdown in real estate investment' will drag on any gains to growth from an acceleration in exports, Ma wrote.
The world's second largest economy showed further signs of weakness last month with factory shutdowns exacerbating sluggish demand. Bloomberg 's gross domestic product (GDP) tracker came in at 6.78% year-on-year in November, down from 6.91% in October and the fourth month below 7%, according to a preliminary reading.
Export growth is forecast to hit 6.9% next year, while consumer price index inflation will be 2.2%, according Ma's report. Data last week showed exports rose 4.7% in November from a year earlier, while imports unexpectedly dropped amid weak demand. Bloomberg
Post a Comment for "PBOC economist says China's GDP growth to slow to 7.1% in 2015"