Three months into China’s market turmoil early this year, the outlook for the world’s second-largest economy remains murky.
China’s repeatedly assured that the economy is not headed for a hard landing and growth will be between 6.5 and 7 percent this year. Private economists seem less confident.
Official GDP (gross domestic product) growth will likely end up in the 5.5 to 6.5 percent range amid headwinds, according to Luke Spajic, a portfolio manager at Pimco.
Spajic, along with this colleagues, identified the four big risks for the Chinese economy in a report released on Friday:
China has accumulated over $21 trillion in debt since 2007 – more than one third of the world’s debt, said Spajic.