China’s economy may grow 3% this year as the government ramps up policy support, said Zhang Ming, a researcher at the Chinese Academy of Social Sciences, a top government think tank, reported Reuters.
Gross domestic product could return to 2% to 3% growth in the second quarter as factories step up production, Zhang said in a forum held online on Tuesday.
Zhang still expects the central bank to trim key interest rates, the Medium Lending Facility (MLF) and the Loan Prime Rate (LPR), while cutting the required reserve ratio (RRR) – the amount of cash banks are required to hold – twice in the second half of the year.
“It would be very tough for the manufacturing sector in the second half,” he said. “Real estate is resilient, but property investment will not rise sharply, as the tone of policy tightening will not be fundamentally reversed. Therefore growth will have to mainly depend on infrastructure.”