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18:00, 16-Oct-2017
Central bank optimistic about second half economic performance
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China’s central bank governor Zhou Xiaochuan has suggested that gross domestic product (GDP) might reach 7 percent for the second half of the year, riding upwards on a momentum that might see the figure reach a two-year high.
He made the prediction, which will seat China comfortably above its yearly target of 6.5 percent increase in GDP, along with a recap of China’s campaigns in the past year to restructure and deleverage the economy, during the annual meeting of the International Monetary and Financial Committee in Washington on Sunday .
He attributed the strong forecast in the second half to robust household spending data, exceeding expectations and growing by 10.4 percent as for the first eight months this year, with a marked shift to spending on services. GDP growth in the first half was at 6.9 percent.
Zhou made the remarks ahead of the release of September’s inflation figures. The Producer Price Index, a measure of prices at the factory gates, jumped to 6.9 percent, according to Monday’s figures carrying on an apparent pickup since August’s 6.3 percent, which ended a three-month streak of 5.5 percent. Meanwhile, China’s consumer price index rose 1.6 percent from a year ago, in line with expectations.
Zhou also said that China, for now, remained focused on solving domestic issues, many of which during he addressed his speech. These include stemming financial risk, curbing shadow banking activities, devising a clearer revenue distribution model between local and central governments, as well as taking steps to ameliorate the health and education sectors.
These issues would be front and center for China, instead of vying for a leading role seeking to reform the international system.
His optimistic forecast before banking chiefs from across the world also comes just days before the national statistics bureau is set to publish GPD numbers for the third quarter on Thursday. The 19th National Congress of the Communist Party of China will convene on Wednesday.