69436
The Asian Development Bank said increases in both domestic consumption and foreign trade helped promote China’s economic outlook.  The picture shows Nantou Town, China’s home appliance industry base.
The Asian Development Bank said increases in both domestic consumption and foreign trade helped promote China’s economic outlook.  The picture shows Nantou Town, China’s home appliance industry base.

China’s Growth Outlook Brighter

The IMF has expressed confidence in China’s economic growth, considering solid first quarter underpinned by previous policy easing and supply-side reform, including efforts to reduce excess capacity in the industrial sector

China’s Growth Outlook Brighter

Doomsayers on China's economy have been wrong in the past, and they are wrong again today. China reported 6.9% GDP growth for the first half of 2017, exceeded the 6.7% rise in 2016 as well as beating the consensus of forecasters.
Forecasters find it difficult to resist superimposing outcomes in major crisis-battered developed economies on China, but they overlook deeper issues shaping the China growth debate, said Stephen Roach, faculty member at Yale University, Xinhua reported.
The latest bout of pessimism over the Chinese economy has focused on the twin headwinds of deleveraging and a tightening of the property market.
As Roach has argued, China, with its far larger saving cushion and much smaller sovereign debt burden (49% of GDP), is in much better shape to avoid a sovereign debt crisis.
There is always good reason to worry about the Chinese property market, but unlike those of other fully urbanized major economies, China's housing market enjoys ample support from the demand side, he noted.

Raising Prospects
To stay tuned with the latest development of the Chinese economy, international financial heavyweights raised their prospects on the Chinese economy.
The IMF saw China's 2017 growth at 6.7%, 0.1 percentage points higher than its last estimate. It shows IMF confidence in China's economic growth, considering solid first quarter underpinned by previous policy easing and supply-side reform, including efforts to reduce excess capacity in the industrial sector.
JPMorgan and Nomura Securities raised their annual growth forecast to 6.8% from 6.7%, while Citigroup and Standard Chartered Bank revised their 2017 projection for China upward by 0.2 percentage points to 6.8%.
The expanding consumption and services industries as well as increasing private investment in China will boost growth despite slowing investment in infrastructure and real estate in the second half of the year, on top of a financial deleveraging, said JPMorgan.
The Asian Development Bank revised China's growth up to 6.7% this year and 6.4% next year, from 6.5% and 6.2%, respectively, in its latest Outlook supplement.
The ADB said increases in both domestic consumption and foreign trade helped promote China's economic outlook, which came as a result of a steady rise in both personal income and public spending.
Acknowledging China's slower economic growth with reformed structure under the new normal, these institutions showed less concern about the country's economic hard landing and financial risks compared to last year, and China is expected to continue stabilizing.
"What happens in China doesn't stay in China," said Maurice Obstfeld, IMF chief economist. "Strong Chinese growth drives growth particularly in Asia but also throughout the world."

Avoiding Middle Income Trap
The Chinese economy enjoys bright prospects and will not fall into the middle income trap, a senior official with China’s top economic policy-making office said last Thursday.
“Positive changes are taking place in China’s economic development, and the economic fundamentals are sound,” Yang Weimin, deputy head of the Office of the Central Leading Group on Finance and Economic Affairs told a press conference.
In the first half of 2017, China’s economy has been in stable operation, with the quality and efficiency of growth both being further enhanced, said Yang, noting progress in country’s economic structural adjustment.
Consumption, investment and exports posted more balanced increases, with consumption contributing 63.4% to GDP growth in the first half, he said.
Yang also cited other positive signs including relatively fast growth of the service sector and structural improvement in the industrial sector.
The Chinese economy continued steady expansion in the first half of this year with GDP up 6.9% year on year, official data showed.
The middle income trap occurs when a country’s growth plateaus and eventually stagnates after reaching middle income levels. China became a middle-income country in 2012 after its per capita GDP exceeded $5,000, according to the National Statistics Bureau.
Cong Liang, an official with National Development and Reform Commission, particularly noted that all the positive changes in the economy took place amid the ongoing structural improvement.
“Rather than adopting large-scale stimulus as most western nations did, we have been pushing forward mass entrepreneurship and innovation to fuel the real economy, and prompting steady growth by restructuring and transformation of capacities,” Cong said.

 

Short URL : https://goo.gl/hGBwvN
  1. https://goo.gl/53dxgX
  • https://goo.gl/yaBRFc
  • https://goo.gl/77R4xd
  • https://goo.gl/iUw7aF
  • https://goo.gl/VPU1XT

You can also read ...

US Economy Back on Top of World Competitiveness Ranking
Marking its 30th edition this year, the IMD World...
Some 96% believe that bribery and corruption was an important issue to tackle.
Almost one out of two large global companies experienced some...
Deutsche Bank Will Cut 7,000 Jobs
Deutsche Bank said on Thursday it will reduce global staff...
China Debt Crackdown Leaves Institutions Short of Cash
China is cutting off funds to financial companies and banks...
Taiwan Growth Forecast Upgraded to 2.6%
The directorate general of budget, accounting and statistics...
Turkey Raises Rates Sharply to Prop Up Lira
Turkish President Recep Tayyip Erdogan is facing a potentially...
Two Oman Banks Discuss Merger
Oman Arab Bank has initiated merger talks with fellow Muscat-...
MSCI’s broadest index of Asia-Pacific shares outside Japan was almost flat.
Market sentiment was a little shaky on Friday with Asian...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus