RT Banner 2021V4.gif

China Daily

News> Business> Content
Friday, May 31, 2019, 18:07
World Bank confident China will post 6.2% growth rate
By Chen Jia
Friday, May 31, 2019, 18:07 By Chen Jia

A bird's-eye view of Beijing on Dec 8, 2018. (PHOTO / IC)

The World Bank maintained its prediction for Chinese economic growth at 6.2 percent in 2019, despite increasing global uncertainties, because the world's second-largest economy has remained resilient, an updated report said on Friday.

In response to the growth moderation and less favorable external conditions, the government introduced a fiscal stimulus emphasizing tax incentives

Martin Raiser, Country director for China, World Bank 

"In an external environment that has become less favorable due to slowing global growth and rising trade tensions, China's economy will need to rely increasingly on domestic demand to sustain rapid growth," according to the May's edition of the World Bank's China Economic Update.

ALSO READ: China plans more steps to lift overseas investment

The escalation in trade tensions between China and the United States, may lead to weaker business confidence and slower global trade growth, which is expected to weigh on investment and exports in 2020. But in the near term, as China shows positive surprise in GDP growth in the first quarter, and the macroeconomic policies have taken effects on stabilizing the growth, the GDP growth rate is likely to stay at 6.2 percent, the report said.

"In response to the growth moderation and less favorable external conditions, the government introduced a fiscal stimulus emphasizing tax incentives," said Martin Raiser, World Bank Country director for China.

READ MORE: HSBC sees 6.6% GDP growth in China in 2019

"While the central government has fiscal space to further increase spending, if necessary, the additional stimulus should be appropriately funded either directly at the central level or through additional fiscal transfers to the provinces. Higher spending on health, education, and social protection could help boost demand and improve the quality of services, if combined with reforms to increase efficiency," he added.

Share this story

CHINA DAILY
HONG KONG NEWS
OPEN
Please click in the upper right corner to open it in your browser !