China 2016 economic growth slows to 6.5% despite policy support
China's economic growth is supposed to cool to about 6.5% this year. That’s the low end of Beijing's target range, even with the country’s the government stepping up spending and the major bank loosening policy further to prevent an abrupt slowdown, a Reuters surveyed demonstrated.
Persistent pressure on the number two economy in the world due to poor exports as well as massive industrial overcapacity are increasing the stakes for policymakers keen on ensuring job growth while avoiding more serious downtime from the country’s mounting debt.
The Chinese economy is still facing structural issues such as oversupply of real estate as well as overcapacity. Any policy stimulus on investment wouldn’t be indefinite enough and economic growth will probably resume its downtrend.
The median forecast in a Reuters poll of up to 60 economists conducted in the past week is for 6.5% growth this year, perhaps, the weakest in a quarter of a century.