China’s real economic growth this year is likely to be at the 6 percent level compared with the 6.9 percent projected by the government, according to a private-sector economist.
Keith Wade, chief economist and strategist for Schroders, also said that it may be more realistic to pin a growth target of 5.0 to 5.5 percent for China for the next three to four years, rather than the current goal of at least 6.5 percent annual expansion for the five years ending 2020.
Wade, however, doesn’t expect any hard landing for the Asian giant as he believes the government’s policy tools can ensure an orderly slowdown in the economy, the Hong Kong Economic Journal reported.
In other comments, he said the forecast for global growth has been revised down to 2.6 percent from 2.9 percent due to China’s problems and uncertainties surrounding other major economies.
Wade expects the US Federal Reserve to raise its key interest rate by 25 basis points this month and steadily adjust the rate higher to take it to one percent by the end of 2016 and to 2 percent by the end of 2017.
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