China’s economic growth is expected rest at 6.6 % this year and might go more deep to 6.5 % in 2017, even if the government keeps up policy support.
China is facing serious fall in its export due to reducing global demands. Plus it is cutting industrial overcapacity. This might lead to financial crisis. The step of a correcting the high-flying real estate sector can also threaten financial stability.
Recently, WTO cut its estimated global trade growth of this year by more than 1.7 %, anticipating a slowdown in China and decreasing imports into the United States.
In the latest poll, the highest growth forecast for 2016 is mentioned to be 6.8 % and the lowest is 6.3 %. But many China experts suspect real growth is already weaker than official data suggest.
Some analysts believe, flooding the system with more money can’t do much to boost growth as companies will be hoarding cash rather than making new investments.###