OECD Expects China to Grow 7% in 2015

March 20, 2015 Share Print 0

China’s economy is likely to grow around 7 percent this year and 6.9 percent in 2016 as the government pushes reforms on interest rates and the currency and pursues slower but higher-quality growth, the OECD said on Friday.

China can avoid an abrupt slowdown as long as the government ensures an orderly unwinding of economic imbalances, the Organisation for Economic Co-operation and Development said in its latest survey on the world’s second-largest economy.

OECD Secretary-general Angel Gurria said he also expected domestic demand will be strong enough to prevent deflation.

“I think 7 percent (economic growth) is more sustainable, 7 percent avoids bubbles and 7 percent is attainable,” he told Reuters in an interview.

Beijing has been trying to reduce excess factory capacity, local government debt and risks from a cooling property market, which are likely to drag growth to a quarter-century low of around 7 percent this year from 7.4 percent in 2014.

via Reuters

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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.