|Jenia Cane |||Feb 16, 2017 04:50 PM EST|
(Photo : Feng Li/Getty Images) Delegates leave the Great Hall of the People after the opening session of the National People's Congress in Beijing, China.
A leading international financial institution is confident that China will be able to achieve its target GDP this year notwithstanding the challenges facing the global economy.
"We expect China to continue to set its GDP growth target at about 6.5 percent for 2017, and the world's second-largest economy could grow by 6.6 percent this year," noted Ding Shuang, chief greater China economist at Standard Chartered.
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Despite this positive outlook, Ding said that China needs to confront major challenges which include coping with unfavorable US policies towards China, as well as adapting to a post Brexit world, reported China Daily.
In the domestic front, the bank executive anticipates a slowdown in China's real estate market due to tighter government policies, as well as a contraction in passenger car sales.
However, Ding explained these developments will not have a major impact on China's GDP, as the country's other engines of growth are starting to pick up the slack.
For instance, he said the service sector will experience faster growth, as the Chinese people expect better entertainment, healthcare, education and travel experiences.
Moreover, Ding pointed out that China's exports are also showing signs of a rebound after an unimpressive performance last year, while foreign trade grew by 19.6 percent year-on-year in January and beating prevailing market expectations.
According to Ding, China's GDP is also expected to maintain a steady course, as the global economy has started to show signs of a positive turn around, with the US and the European Union's growing factory and service activities.
In the meantime, the latest credit and social financing data indicate that the financial reforms being carried out by the Chinese government have started to bear fruit, reported CCTV.
This is mainly reflected in the number of less new yuan loans approved in January for the bubble-prone property sector.
"China's economy is growing steadily with improved quality so far this year as previous reform efforts and policies begin to take effect," noted Zhao Chenxin, spokesman for the National Development and Reform Commission.
Zhao has in fact approved 18 large fixed asset investment projects totaling 153.9 billion yuan ($22.44 billion U.S. dollars) last month in line with efforts to stabilize economic growth by boosting infrastructure investment and maintain China's GDP growth.
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