TAIPEI, Taiwan, Dec. 13, 2017 /PRNewswire/ -- Economists at Taipei, Taiwan-based investment house Burton Mills say that China will probably set its 2018 economic growth target at approximately 6.5 percent, pegging it at the same level as 2017, allowing more potential for solid growth as a government deleveraging campaign is set to step up.
Burton Mills economists believe China will rely more on innate drivers such as technology innovation for economic expansion in 2018, adding that the nation is now underemphasizing the significance of quantitative targets.
China usually announces a yearly growth target which is broadly observed by the market for indications on how much the government will stimulate the economy throughout the following year.
Burton Mills economists say a proposed target would be supported by top government officials at the Central Economic Work Conference, which is due to take place halfway through December, and officially announced at China's yearly congress early next year.
China cut its 2017 growth target to around 6.5 percent from 2016's target of 6.5 to 7 percent, but investment fueled by debt has boosted infrastructure investment as well as property development. In turn, this has given the economy an unanticipated boost.
Burton Mills economists are of the opinion that the Chinese economy is on track to reach an expansion of 6.8 percent this year.
Policymaking sources have stated that China's top officials will probably stick with this year's growth target of around 6.5 percent and carry it through to 2018, even as they increase efforts to prevent a problematic accumulation of debt.
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SOURCE Burton Mills