The World Bank has trimmed its growth forecast slightly for China, citing a “bumpy start to the year”.
It now expects the Chinese economy to grow by 7.6% in 2014, down from its earlier projection of 7.7%.
A slew of disappointing figures has triggered concerns of a slowdown in the world’s second-largest economy.
However, the bank said recent reforms unveiled by China were likely to help it achieve “more sustainable and inclusive” growth in the long term.
The Chinese government set out an ambitious and comprehensive reform agenda in November last year, aimed at overhauling its economy over the next decade.
These include reforming the financial and services sectors as well as the big state-owned enterprises.
“If implemented, the reforms will have a profound impact on China’s land, labour, and capital markets, and enhance the long-term sustainability of its economic growth,” the bank said in its latest report.
“Some reforms, including efforts to reduce regulatory and administrative burdens, reform taxation, and make more land available for commercial activities, are also likely to support growth in the short term.”
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