ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
  • Adani Saga
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Axis MF
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • Viral
    • Education
    • Jobs
Read in App
Business News » World News

China 2016 economic growth seen slowing to 6.6%, 6.5% in 2017

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
China 2016 economic growth seen slowing to 6.6%, 6.5% in 2017
Container boxes are seen at the Yangshan Deep Water Port, part of the Shanghai Free Trade Zone, in Shanghai. Pic: Reuters

China`s economic growth is expected to cool to 6.6% this year and slow further to 6.5% in 2017, even as the government keeps up policy support to help ward off a sharper slowdown, a Reuters poll showed.

The world`s second-largest economy faces nagging downward pressure due to slack global demand that has hurt its exports, as well as risks from painful reforms to cut industrial overcapacity and a growing pile of debt that some analysts fear could spark a financial crisis.

The risk of a correction in the high-flying property sector could also pose a threat as more local governments rush to restrict home purchases to cool surging house prices and ward off housing bubbles.

While fears of a hard landing appear to have eased, recent data also have highlighted growing imbalances in China`s economy, with growth increasingly reliant on government spending as private investment falls to record lows. 

"The downside risks to growth remain larger, though, and they can be manifested in a weaker-than-expected property sector or external demand," economists at HSBC said in a note.

"In addition, the slowdown in private sector investment over the past years means that the organic growth momentum of the economy may have declined, requiring policymakers to be more vigilant in terms of keeping policies as supportive as possible."

Last month, the World Trade Organization cut its forecast for global trade growth this year by more than a third to 1.7%, reflecting a slowdown in China and falling levels of imports into the United States.

Still, the median forecast in a Reuters survey of 59 economists was slightly better than a poll in July, when economists penciled in 2016 growth of 6.5% and 6.3% for 2017. 

In the latest poll, the highest growth forecast for 2016 was 6.8% and the lowest was 6.3%.

The poll also showed China`s economic growth could slow to 6.6% in the fourth quarter of 2016, from an expected 6.7% in the third quarter.

The National Bureau of Statistics is due to release third-quarter gross domestic product (GDP) data on Oct. 19.

Premier Li Keqiang said last week that China`s economy performed better than expected in the third quarter due to a rebound in factory output, company profits and investment.

A construction boom fueled by government infrastructure spending and a hot property market has boosted sales and profits for firms making building materials to furniture, though many smaller companies in unrelated sectors continue to struggle.

The government has set a growth target of 6.5-7% for this year. The economy expanded 6.9% in 2015, the slowest pace in a quarter of a century.

But many China watchers suspect real growth is already weaker than official data suggest.

POLICY SUPPORT SEEN

Analysts also expect annual inflation to average 2% in 2016 and 2017, underscoring the sluggish growth outlook. Inflation was 1.9% in September and 2% in the first nine months of 2016. 

Economists have pushed back expectations of fresh monetary easing amid perceptions that it could aggravate rising debt levels and speculative activities.

Some analysts also believe flooding the system with more liquidity would do little to boost growth as companies may already be hoarding cash rather than making new investments.

As such, the government has been leaning more on fiscal stimulus to spur growth more directly. 

The People`s Bank of China has cut lending rates six times since November 2014 to 4.35%, but has not moved since October 2015.

It also has lowered the amount of cash that banks are required to hold as reserves to 17%, with its last move in February this year.

The PBOC is expected to cut banks` reserve requirement ratios (RRR) by another 50 basis points (bps) in the first quarter of 2017, and cut the benchmark lending rate by 25 bps in the fourth quarter of the year, according to the poll.

Economists polled in July had expected a 75 bps cut in RRR - the amount of cash that banks must hold as reserves - by the end of 2016, and a 25 bps cut in benchmark interest rates by the first quarter of 2017. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
ChinaChina`s economic growthChina GDPEconomyChinese GDPChina ExportsChinese Exports
Written By: Reuters
Updated: Mon, Oct 17, 2016
10:41 am
Beijing, Reuters
RELATED NEWS
Honduras severs diplomatic ties with Taiwan, opens relations with China Honduras severs diplomatic ties with Taiwan, opens relations with China
Japan's Kishida, China's Jinping begin visits to rivals amid Ukraine war Japan's Kishida, China's Jinping begin visits to rivals amid Ukraine war
Xi meets Putin: China's Jinping begins his 1st Moscow visit as Putin wages Ukraine war Xi meets Putin: China's Jinping begins his 1st Moscow visit as Putin wages Ukraine war
China-Russia meet: Russia charged with war crimes, hopes for assistance from China’s Xi China-Russia meet: Russia charged with war crimes, hopes for assistance from China’s Xi
 Aware of China funding of infrastructure projects in countries in South Asia: Govt Aware of China funding of infrastructure projects in countries in South Asia: Govt

LATEST NEWS

Taxpayers Alert: These 10 income tax changes will be applicable from April 1

Next RBI MPC meeting date: Interest rate-deciding panel to meet on these dates; check out April 2023 schedule

IPL 2023 Mumbai Indians Team Performance and Players List: Check MI team updates and full team squad, captain, coach, best batsman, best bowler, schedule

PM Narendra Modi hits out at opposition parties, says action against corrupt will continue

WhatsApp releases update to fix expiration bug on Android beta

Mumbai-Pune Expressway Toll Hike: Charges to increase by 18% from April 1 - Check full toll charge list

Avatar: The Way of Water OTT release date confirmed: James Cameron's directorial to release on these platforms

India reported 1,317 H3N2 cases from January 1-March 21: Rajya Sabha

ITR e-Verification: Received an e-verification notice? Here's what you can do next

Anil Singhvi strategy March 28: Key share market cues, important levels to watch in Nifty50, Nifty Bank today

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. Indiadotcom Digital Private Limited. All Rights Reserved.
LIVE TV