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ADB predicts China's economy to grow 6.6% in 2018

Xinhua | Updated: 2018-04-11 16:22
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MANILA- China's economic growth is expected to reach 6.6 percent this year, the Asian Development Bank (ADB) said in a report released on Wednesday.

In its annual publication Asian Development Outlook (ADO) 2018, the Manila-based bank said China's growth accelerated on strong demand from home and abroad.

"Expansion in China should moderate to 6.6 percent in 2018 and 6.4 percent in 2019 as economic policy leans further toward financial stability and a more sustainable growth trajectory," the ADB said.

According to the Chinese government work report released in March, China has set its GDP growth target at around 6.5 percent for 2018.

The ADB said that service sector is fueling China's continued growth, increasing by 8 percent in 2017. Strong demand at home and abroad together with economic reforms lay the foundation for continued growth and macroeconomic stability in China, it added.

"Further progress on reforms such as strengthening financial sector regulation and supervision and addressing debt issues would lay a foundation for solid macroeconomic stability," the ADB said.

Meanwhile, the ADB said economic growth in East Asia picked up by 0.3 percentage points to 6.3 percent in 2017 "as strong external and internal demand lifted every economy in the sub-region."

The ADB said other economies in the East Asian sub-region will see lower growth as well, mainly on account of moderating export growth.

"These developments will tamp down East Asian economic expansion to 6 percent in 2018 and 5.8 percent in 2019," the ADB said.

The ADB said inflation dipped in East Asia last year, reflecting moderation in China, where food prices fell.

The ADB's economic publication Outlook provides a comprehensive analysis of macroeconomic issues in developing Asia, including growth projections for 45 economies, including China, India, and the Philippines.

The report also examines the prospects for developing Asia by sub-region: Central Asia, East Asia, South Asia, Southeast Asia, and the Pacific.

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