Global financial institutions upgrade China’s economic growth forecasts

A bullet train drives in Qinzhou City, south China’s Guangxi Zhuang Autonomous Region, Aug. 1, 2016. China has built one of the world’s most extensive high-speed rail networks in just a few years. It has the world’s longest high-speed rail network, 22,000 km as of the end of 2016, or 60 percent of the world’s total, and the mileage will increase to 45,000 km by 2030. Guangxi joined the networks of high-speed rail in 2013. Photo: Xinhua

 
Several international financial institutions have upgraded China’s economic growth forecasts to between 6.7 and 6.8 percent for 2017 ahead of the release of China’s economic data for the third quarter, citing driving factors such as the stable expanse of consumption, trade and private investment as the main reasons, domestic news site thepaper.cn said Monday.

China’s economic growth stood at 6.9 percent in the first half of this year, according to data released by the National Bureau of Statistics.

Thanks to the current situation of China’s economy, many global organizations have shown optimism toward the country’s economic development in 2017.

JP Morgan Chase & Co and Nomura Securities have upgraded their estimates for China’s 2017 economic growth to 6.8 percent from 6.7 percent, the report said.

Meanwhile, Asian Development Bank has upgraded China’s GDP growth rate estimates for 2017 from 6.5 percent to 6.7 percent, read the report, which noted that Standard Chartered Bank and Citibank have also changed their forecasts from 6.6 percent to 6.8 percent.

Stable expanse of consumption, services, private investment as well as imports and exports have provided support to China’s economic development this year and have also lead the increase in forecasts by these institutions, thepaper.cn report said.

China’s economy should continue on a sound growth momentum in the third quarter, although some uncertain factors still persist in the global markets such as protectionism, Zhang Yansheng, chief research fellow at the China Center for International Economic Exchanges, was quoted as saying in the report.

Currently, the core change of China’s economy is structural differentiation and provinces across the countries have achieved early results during the supply-side reform, such as East China’s Zhejiang Province, Southwest China’s Sichuan Province and Southwest China’s Chongqing Municipality, Zhang said.

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