China’s economy predicted to expand 6.7pc in H1

10 July, 2018 12:00 AM printer

BEIJING: China’s economy is predicted to expand 6.7 percent in the first half of 2018, slightly retreating from the growth seen in the first quarter but showing continued resilience, according to forecast by financial institutions and economists.

Despite some external uncertainties, China’s economy has extended an improving trend on the back of the global economic recovery, rising new growth momentum and a warming property market, said a report released by the international financial research institution with the Bank of China, reports Xinhua.

Lian Ping, chief economist of the Bank of Communications, also forecast growth of 6.7 percent.

In the second quarter, the contribution of consumption and investment to economic growth may come in at 70 percent and 35 percent, respectively.  Although net exports made negative contribution to growth, the fast growth of exports helped pull up manufacturing production and investment, according to Lian.

For the outlook in the second half of the year, chief economist of CITIC Securities Chu Jianfang believes there will be no big risk of recession and the economy will remain resilient, citing rising industrial investment, steady infrastructure investment and warming external demand. The Chinese economy registered 6.8-percent growth in the first quarter.