According to a forecast by Goldman Sachs, a 6.8 percent growth of Chinese economy is expected in the first quarter of 2017.
Last year, the world’s second largest economy declined to 6.9 percent. This year, the Chinese government has set a lower economic growth target at 6.5 percent. The Xi leadership is aiming for a steady growth for the country’s economy.
In a research report, the bank said that there is a firm activity growth as indicated by the purchasing managers’ index (PMI) readings from official and private surveys like.
This year, a 6.6 percent growth is expected for China’s GDP. Goldman Sachs predicts a 6.4 percent growth in the country’s industrial sector, a little higher than the 6.3 percent growth recorded in January and February.
According to the Goldman Sachs forecast, the fixed asset investment growth is expected to remain strong with 8.9 percent expansion in the first quarter of the year, the same growth in the first two months.
Auto sales are expected to remain weak, affecting China’s retail sales. State-run Xinhua News Agency reported a 9.4 percent probable increase in auto sales, slightly lower than the 9.5 percent growth recorded in the first two months of 2017.
The country’s consumer price index (CPI), a key measure of inflation, may bounce back to 1.3 percent in March, up from the 0.8 percent in February. The bank explained that the rebound is expected as distortions from the Chinese New Year effect fades away.
The country’s economy grew 6.8 percent year on year in the fourth quarter of the previous year.
China’s economic data for the first quarter is scheduled for release on April 17. The data will include GDP growth, fixed asset investment, industrial output and retail sales.
The Goldman Sachs forecasts the growth of Chinese economy based on economic index readings from surveys.