The risk of a steep slide in China’s economy has reduced, the head of a government research centre said on Sunday.
The risk of a steep slide in China’s economy has reduced, the head of a government research centre said on Sunday, adding the country had moved through an „L-shaped“ pattern of slowing to now „horizontal“ growth.
China’s economy grew 6.7 percent last year, according to the government, the slowest pace in 26 years. The country met its growth target with support from record bank loans, a speculative housing boom and billions in government investment.
But as Beijing moves to cool the housing market, slow new credit and tighten its purse strings, China will have to depend more on domestic consumption and private investment. The government last week trimmed its economic growth target to about 6.5 percent for this year.
Li Wei, the director of the Development Research Center of the State Council, China’s cabinet, said many positive economic signs were emerging domestically and internationally, and the risk of a large slide in economic growth had „clearly lowered“.
China’s economic development has gone from a „downward stroke in the L-shape to the horizontal stroke“, the official Xinhua news agency said, citing Li’s comments on the sidelines of China’s annual session of parliament.
