China's central bank continues to cut interest rates and reserve ratio. (Photo : www.bullionstar.com)
Researchers at the People's Bank of China (PBoC) revealed that, due to continued decrease in property investments, China's economy will fall to 7.1 percent in 2015.
The data came from a report issued on Dec. 12, Friday, by the bank's research center headed by chief economist Ma Jun.
Accoring to Ma, although the country's overall economy will decline from 7.4 percent to the forecast 7.1 percent, employment and labor-market conditions will remain stable.
Ma clarified that the downward movement of the economy next year will be a result of dwindling real estate investments dragging gains from exports.
The paper indicated that the country's fixed-asset investments will decline from 15.5 percent in 2014 to 12.8 percent next year, a further sign of slowing property and construction industry.
The report added that growth exports in 2015 will be 6.9 percent, while consumer price inflation will be 2.2 percent from 2 percent this year.
As of the first week of December, China's exports have hit the 4.7-percent mark. On the other hand, imports are expected to grow 5.1 percent from 1.9 percent this year.
According to the central bank, the forecast reflects what the government calls the "new normal," or economic growth that is slower but of higher quality.
Further, this forecast is indicative of the government's serious efforts to tackle pollution in order to effect sustainable economic expansion in the future.
