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Think tank expects economic ‘new normal’

Updated: Oct 26,2014 12:26 PM     Xinhua

BEIJING -- A leading think tank expects lower gross domestic product (GDP) growth but better structure in China in coming years.

Yu Bin, head of macro economics with the development research center of the State Council, has said that China would shift steadily toward a “new normal economic state”.

China’s Q4 GDP is expected to rise 7.4 percent after a five-year low of 7.3 percent in Q3, said Yu on Oct 24.

He said the slump of old pillar industries after reaching peaks has dragged on the country’s economy, but maintaining China’s macro policies will be beneficial to economic restructuring.

Despite of overall slowing , some sectors had outstanding performances such as stable employment, increased profits and income and more consumption.

“China’s annual growth target will be around 7 percent in 2015,” Yu said. “Such growth is likely to continue in the next decade because of huge potential and long-term reforms.”

Real estate and exports -- China’s two old pillars -- have both entered a new stage that crazy surges are becoming stable expansion, reflecting the balanced “new normal” economy, Yu said.

“The new normal pursues targets of higher fiscal revenue, more employment, better livelihoods, lower risks and sustainable development,” he added.