The Chinese economy is expected to expand less than expected for this year, according to the Chinese Finance Minister Lou Jiwei. While the Chinese government has set this year’s growth target of 7.5%, Lou Jiwei hints at the U.S China Strategic and Economic Dialogue.
“We don’t think 6.5 percent or 7 percent will be a big problem,” Lou Jiwei said at a press briefing “It’s difficult to give you a limit. But from the data we have, we have the confidence.”
He added, “Please don’t forget that our expected GDP growth rate this year is 7 percent.” Lou said “there won’t be much of a problem to meet our expectations this year.”
The Chinese stock had a recent two-day steep fall, their lowest fall in 18 months. The Shanghai Composite Index dropped 0.5% as of 11:30 am local time.
The Nikkei was seen at 0.23% at 14,506.25, while the Hong Kong Hang Seng fell by 0.74% to 21,279.86 and the broader Topic Index closed 0.47% higher at 1,200.25 at the time of writing.
Reports from the Statistics bureau for the second quarter gross domestic product are expected to be released on the 15th of July, which is expected to show a 7.5% increased from last year.
The Chinese officials also cut its Chinese GDP growth forecasts for the next year to 6.9% from the previous prediction of 7.5%.
“The downtrend of growth is a result of the structural problems of the economy. In our opinion, structural reforms aimed at solving these problems could lead to even lower growth,” according to the report released.
Lou also said, China has agreed to proceed reforms with the U.S officials, which could open new business opportunities for both countries.
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