A researcher from the Development Research Centre of China’s State Council sees Q4 growth bouncing back to 6.9%.
Zhang Liqun (张立群) said to cnstock.com that September macroeconomic indicators made China’s economic growth prospects clearer, and forecast a bounce back in Q4 growth to 6.9% from 6.8% the preceding quarter.
“July and August economic data both display short-term re-adjustments, but looking at the September data we can determine that the preceding fluctuations were the result of short-term factors, and that a trend of economic stabilisation has already been basically established.”
According to Zhang a new foundation for Chinese growth has already been established, with the economy re-embarking upon a stable path of expansion.
On the one hand, the real economy had improved after languishing in the wake of the Great Financial Crisis, and the recovery of the global economy is now readily apparent.
This is helping to drive Chinese exports, that are are currently seeing double digit growth after posting negative growth last year, with future improvements set to continue.
On the other hand urbanisation is also accelerating, with the development of urban clusters and hot spot second-tier cities driving real-estate investment.