China’s economic growth remains solid, with well-managed slowdown: World Bank

Source:Xinhua Published: 2018/1/10 21:38:40

Growth in China remained solid throughout 2017 and its growth slowdown was well managed, the World Bank said on Tuesday.

China's trade flows recovered markedly in 2017, with tighter enforcement of capital flow management, which "helped ease capital outflows and exchange rate pressures and reverse a reduction in foreign reserves," the World Bank said in its "Global Economic Prospects" report published on Tuesday.

In the latest report, the bank estimated that China's GDP growth in 2017 would come in at 6.8 percent, a 2-basis point increase from its forecast six months ago.

"Currently the growth slowdown in China is being very well managed. It is very steady and gradual and the authorities have managed to calibrate it properly," Franziska Lieselotte Ohnsorge, manager of the development prospects group at the World Bank, told the Xinhua News Agency on Tuesday afternoon.

"Reserves are high [and] government debt is manageable, especially compared with advanced economies," said Ohnsorge, who was one of the lead authors of the report.

Threats to economic stability are being tackled.

"The authorities have already taken a lot of regulatory steps to cool housing markets, to slowly unwind financial vulnerabilities," said Ohnsorge.

"We see the same risk as in other emerging markets, of slower-than-expected growth," she noted.

"But the authorities still have ample buffers to absorb or to mitigate any big shocks."

Ohnsorge forecast that annual economic growth in the country would be between 6 and 6.5 percent over the next decade.

Posted in: ECONOMY

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