The International Monetary Fund (IMF) raised its forecast for China’s economic growth in 2015
In this case, the IMF noted that the negative effect of the cooling real estate market in the second largest economy in the world is overrated.
China’s economic growth is likely to be “well above” 7% next year, says Chang Pu, Director of Asia Department at the IMF.
IMF expects China’s economy will grow by 7.4% in 2014, which is slightly weaker than the official government forecast of 7.5%.
“We expect that China has a lot of tools to maintain growth significantly above 7% in the next year,” – said Rea.
Earlier, Goldman Sachs analysts downgraded the outlook for China’s GDP growth in 2015 to 7.1% from the previously expected 7.6%, according to MarketWatch.
However, for the current year the bank’s experts retained to assess the economic recovery for the current year at 7.3%.
According to the results of II quarter, China’s GDP grew by 7.5% compared to the same period last year, which corresponds to the target levels of government.
Real estate and construction sector is an important engine of economic growth in China, the share of this sector accounts for more than 20% of GDP. In this case, the first 8 months of this year, housing sales in China fell by 10.9%. Experts expect that the decline in real estate prices will continue on the background of a large amount of supply in the housing market and the tightening of credit conditions.