Chinese economy set to slow 6.7%, World Bank predicts

Chinese factory workersThe World Bank expects the Chinese economy to slow to 6.7% in 2016, the bank said in a report on Monday. The projection is on par with its last estimate published in January, and the bank has kept its projection for 2017 at 6.5%. “China’s orderly transition to slower but more sustainable growth has continued despite some volatility in financial markets,” the latest issue of its biannual  East Asia and Pacific Economic Update reports.
The growth deceleration was especially pronounced in the real estate and manufacturing sectors, the report says, while excess capacity is acting as a drag on a wide range of industries. The service sector remains robust, however,with disposable income outpacing overall GDP growth.”The overall capacity of China’s economy to create jobs is extremely high,” said Sudhir Shetty, Chief Economist of the World Bank’s East Asia and Pacific Region at a video conference.
The bank also expects growth in East Asia to ease from 6.5% in 2015 to 6.3% in 2016 and 6.2 % in 2017.

Source: xinhuanet