China’s central banker expects stronger than expected second-half growth
Shanghai/Beijing — China’s economy is expected to grow 7% in the second half of this year, the central bank governor said, accelerating from the first six months and defying widespread expectations for a slowdown. While China produced forecast-beating growth of 6.9% in the first half, many economists and investors had expected its momentum would start to fade in the latter part of the year. Those views of a slowdown have been largely predicated on three factors: higher borrowing costs; increasing curbs on home buying to cool soaring prices; and government-mandated shutdowns of many steel mills and other industrial plants in coming months to reduce winter air pollution. But the driving force behind growth had been mainly rising household consumption, governor Zhou Xiaochuan said in remarks published on the People’s Bank of China’s (PBoC) website on Monday. "China’s economic growth has slowed over the past few years … but economic growth has rebounded this year, with GDP reaching 6.9%...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.