The State Information Center, an official think-tank affiliated with the National Development and Reform Commission, has predicted China’s economy to grow 6.7 percent in Q2 of this year.
The center cited rising investment in infrastructure and a recovery in the property market as the main factors that will fuel the country’s economic growth.
According to an estimate by the center, China’s exports will probably fall 8 percent in Q2 while imports will fall 10 percent.
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The think-tank also expected the services sector to grow 7.5 percent in Q2 while retail sales are expected to rise 10.5 percent. The country’s GDP grew 6.7 percent year on year in Q1.
The growth further narrowed from the previous quarter’s 6.8 percent, which was already the lowest quarterly rate since the global financial crisis.
The State Information Center, however, warned that excessive industrial capacity and slowing private investment will continue to pose challenges to economic growth. – BusinessNewsAsia.com