The World Bank has raised its forecast for China’s GDP growth in 2017, claiming that ongoing efforts to contain financial risk have done little to compromise the country’s economic momentum.
The bank’s latest China Economic Update report lifts its forecast for Chinese GDP growth in 2017 to 6.8%, from the 6.7% of its last forecast in october.
The World Bank hailed the ability of Chinese policymakers to address financial risk without impeding economic growth.
“China has maintained its growth resilience and gained reform momentum,” said John Litwack, the World Bank’s lead economist for China.
“The authorities have undertaken a host of policy and regulatory measures aimed at reducing macroeconomic imbalances and limiting financial risks without notable impact on growth.
“As a result, 2017 has been a successful year for China on many fronts. Economic rebalancing received a boost – the growth of household incomes and consumption accelerated this year relative to investment.”
The World Bank nonetheless expects tighter domestic policy to slow GDP growth in the near term, forecasting economic expansion of 6.4% in 2018 and 6.3% in 2019.