Chinese Real Estate Risk Big Threat to Growth Target

China’s economy is in danger of missing its growth target as risk balloons in the country’s all-important real estate sector, according to a CNNMoney survey of economists.
Gross domestic product is forecast to have expanded by 7.4% in the second quarter, compared to the same period last year, according to the median estimate of 12 economists. That figure matches GDP growth in the first three months of the year.

The economists expect full-year expansion to slow to 7.3% — below the government’s official 7.5% target. Economic growth is forecast to slide further to 7% in 2015.
The National Bureau of Statistics will announce official second quarter GDP figures on July 16.
China averaged growth of around 10% a year in the last three decades, pushing it up the list of biggest economies and boosting household wealth. But now, the pace of economic expansion is languishing — China recorded GDP growth of 7.7% in the last two years, versus 9.3% in 2011 and 10.5% in 2010.

via CNN

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza