China's Q2 GDP growth seen easing to around 6.7 percent - official think tank
The forecast was slightly slower than the 6.8 percent expansion posted in the first quarter. The SIC is an official think tank affiliated with the National Development and Reform Commission, the country`s top economic planning agency.
China`s economy will likely expand around 6.7% in the second quarter this year, the State Information Center (SIC) said in an article in the state-owned China Securities Journal on Saturday.
The forecast was slightly slower than the 6.8% expansion posted in the first quarter. The SIC is an official think tank affiliated with the National Development and Reform Commission, the country`s top economic planning agency.
April activity data released earlier this week suggested that the world`s second-largest economy is starting to lose some momentum, as analysts have long predicted, as the government continues a crackdown on riskier types of financing.
While still expanding at a good clip, retail sales and fixed asset investment grew more modestly than expected while property sales fell for the first time in six months in the face of continued government curbs on speculation and rising mortgage rates.
The lone bright spot was a rebound in industrial output, though the outlook for exporters is being clouded by trade frictions with the United States.
Despite stronger-than-expected first-quarter growth, economists polled by Reuters still expect a gradual slowdown to around 6.5% this year, which is also the government`s target, assuming there are no trade shocks.
The official think tank expects dollar-denominated exports to grow around 8% in the second quarter versus a year earlier and imports to rise about 10%.
It forecast consumer inflation of around 2% and expected producer price inflation would pick-up to about 3.8% in the second quarter from a year earlier.
The think tank suggested the government "maintain flexibility in macro economic policy and actively deal with trade frictions between the United States and China ... to ensure a steady and healthy development of the country`s broader economy."
In the same article, the SIC said it expects China`s industrial output to grow about 6.6% in April-June from a year earlier, with fixed-asset investment growth of around 7.2% and retail sales seen rising about 10%.
China`s statistics bureau said this week that steady economic growth in April made a good foundation for achieving the full-year growth target.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
05:48 PM IST