ZCZC
BCN-40
CHINA-ECONOMY-ADB
China’s economy expected to grow 6.6 pct, 6.4 pct in next two years: ADB
MANILA, July 19, 2018 (BSS/Xinhua) – China’s economy is projected to meet
the Asian Development Bank’s (ADB) previous forecasts of 6.6 percent in 2018
and 6.4 percent in 2019, as the result of the solid growth of retail sales
and investment in manufacturing, said a new ADB report released on Thursday.
In its Asian Development Outlook (ADO) 2018 report supplement, ADB said
China’s gross domestic product (GDP), the world’s second-largest, expanded by
6.8 percent in the first half of 2018, supported by strong private
consumption and robust investment in real estate and manufacturing.
The Manila-based bank said, China is still expected to grow by 6.6 percent
in 2018 before moderating to 6.4 percent in 2019, which is the same as the
prediction in April.
The main reasons why China’s economy meets the earlier prediction are
domestic demand and industrial growth, according to ADB.
“Nominal growth in retail sales was solid, bolstered by buoyant consumer
confidence, higher disposable income, and a tight labor market,” the updated
report said, “Healthy domestic demand prompted imports to rise faster than
exports.”
ADB said China’s exports remained strong as the recovery in global demand
continued.
Regarding the industrial production, ADB said it maintained growing.
“Industrial production growth edged from 6.6 percent in 2017 to 6.7 percent
from January to June, driven by a robust pickup in manufacturing output and
higher electricity generation,” ADB said in the report.
However, ADB pointed out that China’s nominal fixed asset investment is
now experiencing “the softest expansion in decades.”
“Growth in nominal fixed asset investment decelerated from 7.2 percent in
2017 to 6.0 percent from January to June as growth in infrastructure
investment declined sharply,” added the report.
The ADB’s economic publication Outlook provides a comprehensive analysis
of macroeconomic issues in developing Asia, including growth projections for
major economies, including China, India, and the Philippines.
BSS/XINHUA/HR/1450