Chinese experts are expecting an economic growth of 6.9% this year, almost the same as the predictions of a 7% growth estimated for 2015. Last year, the growth pace was slightly higher, at 7.3%. The slowdown is mainly attributed to capital relocation fiscal spending management. Exports and foreign investments remain two of the most important pillars of the economy and the Chinese president has made it clear recently that the foreign investments policy will continue to remain attractive.
A steady economy
The report regarding economic growth was released by the Chinese Academy of Social Sciences. The experts have also expressed their thoughts on why the economy has been slowing down this year, compared to 2014. Inefficient capital relocation and the fact that fiscal spending has been held back seem to be the two main factors. Moreover, experts believe that the Chinese Government could find areas where investments could have the most significant impact in terms of economic growth. Also, it was estimated that the following five years would have a significant impact on the evolution of the economy.
and foreign investments have long been two of the most important areas that contribute to the wellbeing of the economy. Now, the Government aims to shift that dependency to other areas like consumption and manufacturing. However, this year, the slow economic rise has somewhat interfered with the plan to rely more heavily on consumption.
This year, the country’s economy grew by 7 percent in the first half, better that the expectations for a 6.8 percent growth but the annual target remains below the total 7 percent. Experts from the National Development and Reform Commission have said that the country’s economic growth is still within reasonable standards. A recent report indicates that there has been a recovery in the industrial output
, infrastructure construction and the property market
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