Moderate growth to continue in China - ADB
Hong Kong, China: Slowing investment growth and active implementation
of structural reforms will push economic growth in the People's Republic
of China (PRC) in 2014, continuing a more moderate but still robust pace
of growth, said a new Asian Development Bank (ADB) report.
"The authorities are tightening credit growth and working to bring
local government debt under control. They have also embarked on an
ambitious reform agenda that will impact key areas of the economy," said
ADB's Deputy Chief Economist Juzhong Zhuang.
"The reform agenda is critical and well-designed.
It has the potential to improve the quality of growth, make growth
more inclusive, and ensure it is sustainable over the long term. But as
the changes roll out, growth could slow further before it stabilises or
rises again," he said.
ADB's flagship annual economic publication, Asian Development Outlook
2014 (ADO), released last week said the PRC 'the world's second largest
economy' is set to post gross domestic product (GDP) growth of 7.5% in
2014 and 7.4% in 2015. The economy expanded by 7.7% in 2013, the same
rate as in 2012.
Reforms expected to weigh on headline growth include state-owned
enterprise reform and higher prices or taxes for energy, water and other
utilities. Incentives for senior local government officials to focus
less on quantitative growth targets will also affect growth.