China’s 2016 Growth Reasuring in Weak Global Economy
China will meet its growth target of 6.5 to 7% growth this year, a reassuring sign for a “weak and vulnerable” global economy, according at on official commentary Monday.
It noted a “troublesome start” to Y 2016, probably referring to a sharp fall in the RMB Yuan and worry about China’s slowing economy roiling markets worldwide.
RMB Yuan remains weak after foreign reserves fell more than expected in November.
Maintaining a high and stable growth rate may not be easy for China in Y 2017, “given persistently weak external demand, ongoing deleveraging and capacity-reduction pressure, and a slowing property sector.”
Unlike other countries, China has the flexibility to ward off sharp economic decline as it restructures its economy toward consumption and services, the article said.
It warned that trading partners would only have access to China’s home market if similar access was given by other countries, a nod to growing protectionist sentiment around the world, a worrying trend for the world’s largest exporter.
China may target economic growth of about 6.5% next year, higher than most other major economies, but if that slowdown in growth did occur, others will need China “more than ever.”
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