Despite the fact that China’s economic growth is expected to slow down, the country’s growth target is achievable and potential risks are manageable, an Asian Development Bank (ADB) economist said on April 5.
Juzhong Zhuang, deputy chief economist and deputy director general of the Economic Research and Regional Cooperation Department at the Asian Development Bank (ADB), made the remarks at an event to present the Asian Development Outlook 2016 report.
He said that “potential risks have increased in China,” but added that “China’s target growth is achievable and risks are manageable,” stressing the fact that “the government is aware” of it and “they are taking action.”
According to Zhuang, the slowing down of China’s economic growth is due to a weak external demand, structural factors affecting demographics, China’s exports competitiveness and the government policy of shifting the model from growth led by exports and investment to growth led by consumption and the services sector.
Economic growth in developing Asia will soften slightly to 5.7 percent in 2016 and 2017 from the 5.9 percent in 2015, according to the ADB report. It emphasized that structural reforms are needed in order to boost Asia’s potential growth.