A Reuters poll of economists has predicted that China’s 2018 GDP growth will be higher than previously expected, despite the cluster of economic threats facing the world’s second largest economy in the second half of the year.
The 76 analysts surveyed gave an average forecast of 6.6% growth for the year, up from the 6.5% prediction made in April. The forecasts ranged from 6.3% to as high as 6.9%.
The government set itself the target of 6.5% annual growth during the Two Sessions meetings in March, down from 6.9% posted in 2017. In addresses from senior officials, however, rapid GDP growth was given less weight relative to previous years, with greater emphasis on more sustainable growth rates.
China’s first quarter growth figures exceeded expectations at 6.8%, however it is widely believed that the next six months will be challenging for the nation’s economy due to escalating trade tensions with the US and fallout from Beijing’s debt crackdown, causing momentum to ease somewhat.