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China economy will grow 6.6%

This year, China’s economy is expected to surge at approximately 6.6% and it will require to be underpinned by policy support during the second half to withstand downward pressure, as the Chian Academy of Social Sciences states.    

The forecast from one of Chinese top government think-tanks was posted by the official Shanghai Securities Journal newspaper on Tuesday. It contradicts to a somewhat more pessimistic outlook, made by financial analysts in May, when CASS had predicted growth of about 6.6%-6.8% for the year.

Consumer price inflation will most probably soar 2% for the year, while the descend in producer prices will go down, according to the CASS forecasts. By the way, inflation was running at 2.1% for the first five months of 2016.

Retail spending growth are going to stand still, though money supply growth will most likely slow, and the same is true for growth in investment in fixed assets as well as property development.

CASS told China should deepen economic reform as well as restructuring in the second half of 2016. Furthermore, the country is also expected to optimize leverage levels and also clean up zombie companies.

 

 

 

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