Stock photo of Chinese flag near some corporate buildings in Hong Kong. July 6, 2018. REUTERS / Bobby Yip
XANGAI (Reuters) – China's economic growth will be 6.6 percent this year and slow to 6.3 percent in 2019, while the Asian giant faces trade-related challenges and structural reforms, they said. in a report by Renmin University economists in Beijing.
The forecasts, released by Chinese Academy of Social Sciences news service on Saturday, are in line with the average forecast of a poll of 73 economists conducted by Reuters last month.
Beijing is under increasing pressure from its trade war with the United States.
But economists warned in the report that China will continue to face difficulties even if tensions with the United States are resolved because of the deteriorating global trade environment, declining export growth and currency depreciation.
China's Gross Domestic Product (GDP) grew 6.5% year-on-year in the September quarter, its smallest expansion since 2009, and Beijing has tried to encourage commercial banks to increase lending to private companies and measures to alleviate financing problems of companies.
Economists have argued that China needs a new round of structural reforms. They also predicted that 2019 would be critical in restructuring the country's economy and its long-term transition to a slower, higher quality model of growth.
The report said that next year there will also be a rebalancing of Chinese foreign trade, with imports likely to increase by 16.1%, compared to a 6.1% increase in 2018.
In addition, the report points out that Chinese consumer spending may increase by 9% next year, outpacing overall growth.
David Stanway's Information; Edited into Spanish by Javier Leira