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Economy's growth rate set to continue on right track, says expert

By Fu Jing in Prague | chinadaily.com.cn | Updated: 2017-07-19 03:07

China's economy will grow at 7.0-7.1 percent in 2018 and 2019, said economist Li Daokui on Tuesday after the central government announced that the Chinese economy grew by 6.9 percent in the past six months, compared to the same period last year.

"I believe that China's growth rate will be 6.9 percent in 2017 and the economy will be bottoming up, with our growth regaining upward to the range of 7 percent and above," said Li, professor of Tsinghua University and also a member of Chinese People's Political Consultative Conference.

Li was speaking after delivering a speech at Tuesday's China Investment Forum in Prague. Czech Republic Prime Minister Bohuslav Sobotka and Liu Yunshan, member of the Standing Committee of the Political Bureau of the CPC Central Committee, also spoke at the forum.

Li said consistent recovery of global economy, China's successful economic restructuring and the local governments' growing passion in driving new investment will be "three positive factors" behind his "cautious optimism" over China's upward trends.

"I am cautiously optimistic about the prospects if we can continuously manage the risks at home and abroad properly," said Li.

"Based on our research outcomes, China has potential to keep its growth above 7 percent for a few years."

Fredrik Erixon, director of European Center for International Political Economy also said China's growth will remain in the current range throughout the year.

"We have seen some moderation in investments and retail sales, but trade is likely to be driving growth," said Erixon.

Erixon said China has several sources of growth, and the good news over the past year is that domestic consumption has gradually become more important and is taking over from investment as key source of growth.

"China has already acknowledged what needs to be done - to re-balance its economy, to open up more sectors for competition and help to drive growth in services, innovation and technology adoption," said Erixon.

Erixon also said that Beijing has already identified the importance of moderating credit growth and getting the capital market to allocate money in better ways.

"If faster economic growth will be maintained, the challenge ahead is to continue delivering on these objectives," said Erixon.


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