Chinese economy has gained strong momentum for growth: CPC

India News

China has full confidence in the positive long-term outlook and sound growth of its economy despite the global slowdown, the ruling Communist Party of China (CPC) said today. The economy has strong momentum for steady progress and growth, and major international institutions have revised up their growth forecasts for China, Tuo Zhen, spokesperson for the 19th Congress CPC told media here. The once-in-a-five-years Congress will open here tomorrow and conclude on October 24. Besides endorsing a second term for President Xi Jinping it is expected to elect a new set of officials. The International Monetary Fund (IMF) on October 10 raised its forecast for China’s economic growth in 2017 and 2018, citing the stronger-than-expected performance in the first half of the year. In its latest World Economic Outlook, the IMF expected the Chinese economy to grow 6.8 per cent this year and 6.5 per cent next year, both 0.1 percentage point higher than its previous forecast in July. Earlier, the World bank had upgraded China’s 2017 and 2018 economic growth forecasts by 0.2 and 0.1 percentage points to 6.7 per cent and 6.4 per cent respectively. China’s GDP grew 6.9 per cent year-on-year in the first half. Tuo dismissed concerns over any possible negative impact from measures to deleverage the economy, saying reducing leverage and stabilising growth should not be seen as conflicting with each other.Deleveraging can help defuse latent risks that affect the steady, healthy development of the economy and can boost the economy’s resilience in the medium to long term, Tuo said. “Initial progress has already been made in the efforts to reduce leverage, and it has not had any significant dampening effect on the economy,” he said.