ADB Forecasts 6.5% China Growth in 2016

March 30, 2016 Share Print 0

Economic growth in China is projected to slow this year and next year, with the world’s No. 2 economy expected to weigh on overall growth in developing Asia, the Asian Development Bank said Wednesday.

The ADB’s Asian Development Outlook 2016 said China, whose gross domestic product grew 6.9 percent last year, will see smaller expansions of 6.5 percent this year and 6.3 percent in 2017, owing to factors such as reduced investment in industries with excess capacity and emerging labor shortages.

“Simulations estimate that the drop in (China’s) growth may have shaved as much as 0.3 percent point from developing Asia’s outlook,” the report said. “(China’s) effect is largely centered on Asia, reflecting strong regional trade and production links.”

The regional bank’s latest economic publication comes after China said in early March that it will aim to realize average annual growth at 6.5 percent or above in the five years through 2020.

via Mainichi

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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.