Bank tips China growth of 7-8% to 2015, 6.5% onwards to 2020

SINGAPORE – While China’s growth rate has started to decelerate since 2012, slowing to below 8% for the last six consecutive quarters, ANZ Bank believes the new Government will likely engineer a growth rate in the range of 7-8% up to 2015, and around 6.5% from 2016-2020.

“Although China’s GDP growth rate is expected to trend down going forward, the extra GDP added each year is still sizable,” ANZ points out. “China will remain an important contributor to world growth.

“Structural reforms suggest that domestic consumption will play a more central role going forward. Urbanisation will continue to drive demand for resources. Environmental concerns suggest that China will become a big importer of natural gas. Meanwhile, China’s outbound tourism is still underdeveloped and investment is set to grow rapidly under fast liberalisation of the capital account.” www.live.anz.com (ATI).