World Bank – China growth decline close to 7 percent

According to World Bank, China's economic growth could decline up to 7 percent earlier next year but Beijing should center on overhauling China’s economy instead of sticking to official growth targets.

WB officials suggest that in in order to avoid sharper slowdown, it needs to promote efficiency by reforming labor and its real estate markets and state-run financial system.


Trying to stick with the short-term targets might set back by prompting officials to pump its credit into economy and disrupt development of its markets, said by economist Smits.

Smit believed that the policy should focus on reforms rather than meeting the specific growth targets. World Bank report urging reform advocates say that the government President Jinping needs to immediately move ahead with its ambitious plans to give the entrepreneurs and its market forces bigger role in world's second—largest economy.


Based from its report, Economic growth has slowed to five—year low 7.3 percent in latest quarter. That result is largely due to government efforts to promote its growth based on the domestic consumption and reduce its reliance on the trade and investment but raised concern on possible job losses.

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