Wednesday, August 3, 2016

Dan Steinbock — Chinese Growth Staying Close to Target, Despite Bleak Global Prospects

Assuming no surprises in the second half of the year, China’s growth in 2016 will remain near the target of 6.5 percent reflecting structural transition in the mainland, secular stagnation in the West and post-Brexit tensions globally.
In mid-July, China’s second-quarter GDP figures beat estimates with a 6.7 percent expansion, thanks to support by a slate of stimulus measures from the government and the central bank.
In the next two quarters, China’s growth is expected to decelerate to around 6.5 percent or less. In annualized figures, the quarterly data indicates an expansion of nearly 6.5 percent, which remains close to the ambitious target of 6.5-7 percent. At the same time, the consumer price index (CPI) is likely to increase to 2.5 percent….
Chinese Growth Staying Close to Target, Despite Bleak Global Prospects 
Dan Steinbock,  founder of Difference Group and has served as research director at the India, China and America Institute (USA) and visiting fellow at the Shanghai Institutes for International Studies (China) and the EU Centre (Singapore).

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