Printer Friendly

China's Economic Growth Forecast To Slow In 2016.

As China's economy continues to face downward pressure from slowing domestic demand and flagging exports, growth in the world's second-largest economy is expected to slow further next year, a Chinese think tankAaAaAeAeAaAeAeA (http://www.scmp.com/news/china/economy/article/1893595/top-chinese-think-tank-warns-gloomy-economic-prospects-2 reportedly AaAaAeAeAaAeAeA said Sunday.AaAaAeAeAaAeAeA The bleak forecast by China's National Dev and Reform Commission's (NDRC) economic research instituteAaAaAeAeAaAeAeA came days after the People's Bank of China (http://www.reuters.com/article/us-china-economy-forecasts-idUSKBN0TZ10P20151216) revised its growth projection for 2016 to 6.8 percent - down from an expected 6.9 percent this year.

Growth in household spending and consumption could be limited to single digits in 2016, while exports, buoyed by a depreciating yuan, may grow slightly, the research instituteAaAaAeAeAaAeAeA reportedly said, in its rep

"Some hidden unemployment problems will float to the surface to intensify unemployment pressure, and it will be a threat to job stability next year," the NDRC's think tank said, in the report, adding that investment growth, which stood at 10.2 percent between January and November this year, could fall to about 9 percent next year as a (http://www.reuters.com/article/china-economy-property-idUSENNFC80SH20151212) cooling real estate market drags on overall growth.

Despite a raft of policy measures aimed at boosting growth and attracting investment to the country, Beijing has been struggling to achieve its target of 7 percent growth in gross domestic product this year - a problem recently acknowledged byAaAaAeAeAaAeAeA Chinese Premier Li Keqi

As the government's policy easing steps, which include cutting benchmark interest rates, lowering the amount of deposits banks must hold in reserves and devaluing the yuan, continue to meet with limited success, many in Beijing have begun to embrace the "(http://www.ibtimes.com/xi-jinping-embraces-chinas-new-normal-65-annual-growth-target-through-2020-2166586) new normal " - a 6.5 percent annual growth over the next five years.

In order to rescue the economy from a deepening quagmire, the NDRC recommended that China's government should continue to cut interest rates and banks' reserve requirement ratio to bolster flagging growth. It also urged Beijing to allow a modest weakening of currencyAaAaAeAeAaAeAeA to as exports and issue more treasury bonds to raise capital for big-ticket projects.

"We must give more green lights and reduce the number of red lights for businesses so that innovation can be put on a fast track," former NDRC vice-chairman Xu Xianping reportedly said, at a press conference over th

COPYRIGHT 2015 IBT Media, formerly dba International Business Times
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2015 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:International Business Times - US ed.
Geographic Code:9CHIN
Date:Dec 21, 2015
Words:393
Previous Article:Apple, Ericsson End Patent Fight.
Next Article:At Least 91 Missing After China Landslide.
Topics:

Terms of use | Privacy policy | Copyright © 2021 Farlex, Inc. | Feedback | For webmasters |