China’s economy will grow 6.7% in 2016 – Jornal de Negócios – Portugal

The World Bank predicts that China’s economy to grow 6.7% in 2016 and 6.5% in 2017, leading to the slowdown of the economies of East Asian countries to 6.3% this year and 6.2% in the next two.

in a report presented this Monday, April 11 in Beijing, the institution says that the second largest economy will slow in the coming years, given the rate recorded in 2015 (6.9%) for growth “more slow and sustainable. “

for all the east Asian developing countries (excluding Japan and India), the World Bank has advanced forecast last October, pointing to a decrease compared to the rate recorded in 2015 (6.5%).

After a year in which China suffered massive capital flight, the institution based in Washington expects the country to persist in reforms to the economic transition to a more model dependent on domestic consumption. And he believes that Beijing will take measures to contain the increase in debt of local governments and reduce excess production capacity of heavy industry.

“The region’s economies now need policies that reduce risks. For China, this implies mainly reducing debt levels,” said the chief economist at the World Bank (WB) for the East Asia and Pacific Sudhir Shetty, at a press conference.

developing countries in east Asia face increasing risks and should prioritize monetary and fiscal policies that reduce vulnerability, while implementing structural reforms, recommends BM.

Shetty also said that governments in the region, in general, have to be more transparent and reduce trade barriers.

Apart from China, the economies of the countries east Asia grew 4.7% in 2015 and the World Bank predicts an expansion of 4.8% in 2016 and 4.9% in the years 2017 and 2018, supported by southeast Asia, particularly the Philippines and Vietnam.

According to the calculations of the institution, Indonesia, other economic strength of the region will grow 5.1% in 2016 and 5.3% in 2017, driven by the recent reforms and a qualified public investment program as ” ambitious”.

The WB report contains forecasts and recommendations to 26 countries and territories of East Asia and the Pacific islands.