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China to Lower Growth Target as Leaders Tackle Debt Risks

China will set an economic growth target of about 7 percent for 2015, tolerating the weakest expansion in a generation as leaders tackle debt risks and imbalances, according to analysts polled by Bloomberg.

Thirteen of 22 economists said China will shoot for about 7 percent next year, down from this year’s 7.5 percent. Sixteen said the government should change its targeting policy, with nine indicating a range would be better and seven suggesting targets be scrapped altogether in favor of projections or assumptions of growth, as most other nations provide.

The government is holding off broad stimulus, with Premier Li Keqiang expressing a preference for policy improvements and People’s Bank of China Governor Zhou Xiaochuan vowing to stick with a prudent monetary stance. Weighed down by a property slump, gross domestic product probably expanded 7.2 percent in the third quarter, the slowest in more than five years, economists forecast ahead of data due Oct. 21.

Bloomberg [1]

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