Global institutions have expressed optimism regarding the Chinese economy for the coming year based on their analyses of the country’s economic policies as well as major economic indicators, Economic Daily reported on Dec. 25.
Standard Chartered stressed that undeniably China will be faced with stronger downward pressure in 2019, but observers should not be pessimistic about this.
First, the scale and dividends of China’s economic restructuring should not be underestimated, the bank said, explaining that new economy, accounting for 15.7 percent of the country’s GDP, is to be a beneficiary of the restructuring.
Besides new economy, retail trade, real estate, health care, commercial insurance, as well as other industries will all grow alongside consumption upgrades, and furthermore industrial upgrades will contribute to the growth of computer and electronic products, computer programming, and information technology.
The Chinese economy will embrace a 30 percent or above increase if the efficacy of the abovementioned sectors is elevated to the level of developed economies, the bank added.
In addition, the flexibility of the policies for macro-regulation should not be underestimated. Standard Chartered believes that China will be able to achieve growth of 6.4 percent, a figure higher than expectation.
