Rising quality amid easing growth

Source: Xinhua | 2017-01-04

CHINA’S economic growth is set to ease to 6.5 percent this year and 6.3 percent in 2018 but there is likely to be an improvement in growth quality with the deepening of supply-side reform, said a report released by the Shanghai Academy of Social Sciences yesterday.

“China is balancing between a stable growth and uncertainties created by efforts on reducing asset bubbles,” said Quan Heng, an economist at the academy. “With the progress in supply-side reform, China will rely increasingly on technological advancement to drive the growth, realizing more efficient resource allocation and nurturing better growth quality.”

China pressed ahead with reforms on the supply side at the end of 2015 as the country hopes to resolve economic structural problems and foster new growth drivers. Last year, it focused on curtailing excess production capacity and restructuring industries to make them more profitable.

According to the Central Economic Work Conference held last month, China will deepen supply-side reform this year, expanding reform measures to more areas, including overhauling the supply-side of agriculture, reviving the real economy and stabilizing the property sector.

The report saw a modest recovery in the world economy this year, while emerging markets may be more stable.