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Economists forecast 6.7% growth rate in Q3

Reporter: Martina Fuchs 丨 CCTV.com

10-18-2016 16:15 BJT

Wednesday is the moment of truth again, when the country will release third quarter GDP data. Analyst consensus indicates that growth still probably held up at 6.7 percent for a third straight quarter, but September’s trade setback and the bubble-prone property market are posing risks. 
 
All eyes are once again on China's quarterly gross domestic product figures - to be published on Wednesday.

It comes as on Friday, official data showed China's factory output prices grew in September for the first time in almost five years.

But on the flipside, Chinese exports for September slumped 10 percent from a year earlier. Imports were also down, raising questions over the resilience of domestic demand. The question now is: what's in store for the third quarter growth?

Most economists agree that third-quarter GDP expanded 6.7 percent, as it did in the first and second quarters of this year.

One of the biggest headaches for the economy is debt.

Chinese companies are still sitting on $18 trillion in debt, equivalent to about 169 percent of GDP, according to recent figures from the Bank for International Settlements.China unveiled guidelines last week to cut rising levels of corporate debt that some analysts fear could destabilize the economy.

Though China's economy recorded its slowest growth in 25 years in 2015, it has shown signs of stabilizing in recent months. That's mainly thanks to billions of dollars of government infrastructure projects and a spreading credit-fueled housing boom.

For the full year, China is still targeting a GDP goal of 6.5 to 7 percent, after 6.9 percent last year. Most economists think Beijing will meet its official GDP target without much difficulty.







 

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