China’s economy remains on track to expand at the pace forecast by the government, although it will face some bumps periodically, according to Angel Gurria, the secretary-general of the Organization for Economic Cooperation and Development (OECD).
“We can still count on China for some time to continue to produce quite solid growth,” Gurria told the Wall Street Journal. “I don’t see why people talk about a hard landing in China.”
A gradual slowdown is desirable for the Asian giant to grow in a more sustainable manner, at between 7.0 to 7.5 percent a year, Gurria was quoted as saying in an interview in Singapore.
The Chinese economy grew 7.4 percent in the first quarter of 2014 from a year earlier, weakening from a 7.7 percent pace in the preceding three months. The government has said earlier that its official growth target is “around 7.5 percent”.
“They will have their bubbles, they will have their booms, they will have their credit crunches – because they were a planned economy and now are a bit more exposed to markets,” Gurria said. “But that is desirable. They can work it out.”
The OECD chief believes President Xi Jinping’s administration will be able to push through broader reforms.
“I think there’s a newfound willingness in the leadership now to go for a reform agenda, he said.
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