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ADB projects expansion in economy

By Wang Yanfei | chinadaily.com.cn | Updated: 2017-09-26 20:33
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Asian Development Bank on Tuesday released an upbeat forecast on China's growth forecast in 2017 and 2018, based on strong service sector, fiscal expansion and export recovery.

The bank expected China's economy to expand by 6.7 percent in 2017, up from a previous projection of 6.5 percent in April and unchanged from its July forecast.

Growth in 2018 is expected to reach 6.4 percent compared to 6.2 percent in previous forecast.

Juergen Conrad, head of the economics unit at the ADB China Resident Mission, said some promising signs appeared in the second quarter, such as recovery of export, that were not anticipated in April.

He said he expected the good signs to continue to support growth in coming months.

In the meantime, much effort is needed to promote structural reforms, because credit fueled growth may pose risks to the economy in the long run, according to Conrad.

He said the government is doing a good job trying to contain risks in the financial sector, and has been trying to see a smooth transition amid the rebalancing process.

He said the efforts have been recognized by rating companies that recently downgraded China's rating, and there should not be too much reading into worries.

China's economy grew at a faster than expected 6.9 percent pace in the first half.

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