China's Economic Growth in 2017 Bleak: Report

| Jan 16, 2017 09:46 AM EST

Chinese President Xi Jinping Meets Dignitaries In Beijing

Changes in politics across the globe and some challenges to China's economic policies will result in more problems and pressure in 2017 for the world's second largest economy, China's Premier Li Keqiang said.

China's economic growth is expected to drop to 6.5 percent from last year's 6.7 percent. Its industrial output is set to grow by 5.9 percent from 6.1 percent in 2016.

In a meeting on Friday in Beijing, the customs agency in China said that in 2017, it will be hard to improve its foreign trade, especially if President-elect Donald Trump's inauguration as well as changes in politics will restrain China's export business.

Trump vowed to pigeonhole Beijing as currency manipulator as soon as he takes his office. He also threatened to impose high tariffs on China's merchandises.

Investors from around the world expressed their curiosity on whether the Chinese leaders are amenable to a moderate economic growth.

An official estimate released on Sunday as reported by Fortune said it is expected that China's biggest cities will experience a continuation of economic slowdown in 2017.

Chongqing's economic growth, for example, is predicted at 10 percent in the current year as compared from last year's 10.7 percent. Shanghai targeted a growth by 6.5 percent from 6.7 percent last year.

Some provinces in China reported either "no growth" or "weak growth" last year mainly due to the government's policy on transition to consumer-oriented market.

It was also reported that provinces and cities which have slow growth in heavy industry contributed to China's slow economic growth in 2016.

But Premier Li, who was also present during the meeting, assured that the government is determined to have a smooth flow in economy and will endeavor to improve not just its growth quality, but also its growth efficiency.

As reported by Reuters, Li insisted China will have reasonable rate of economic growth, adopt policies that would advance its employment rate and eliminate obsolete production capacity.

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