China’s economic data from the first quarter was published recently. Meanwhile, international organizations including IMF, the World Bank, JPMorgan Chase and Goldman Sachs published their latest predictions on the global economic situation.
Although most remain conservative and even pessimistic toward the economic situation in 2016, their reports showed more expectations for China’s economic growth.
At a symposiums held by Premier Li Keqiang on April 11, Q1 statistics provided by local officials showed that the previous policies have taken effect.
According to IMF’s report, “Chinese economy is transforming from investment-driven to consumption-driven. As China is dealing with over-capacity and over-stocking, industrial growth will continue to decline, but service industry will maintain a steady growth.”
“We are confident of the Chinese government. We believe the policies deployed by the Chinese government can ensure that economic growth will reach 6.5 percent. To maintain the number within 6.5 percent and 7 percent is the goal set by them,” said Maurice Obstfeld, a chief economist at IMF.
The market response shows a big contrast to the pessimistic predictions about the Chinese economy before the National People’s Congress and Chinese People’s Political Consultative Conference held in March. At the press conference after the two sessions, Premier Li answered 17 questions, among which half of them involved China’s economic development and related policies.
At the symposium, Premier Li said to local officials, “Chinese economy is transforming its driving force. We cannot avoid a complex economic trend. But we should also notice positive changes. We need to be confident, uncompromising and focused to maintain economic growth within a reasonable range.”
“It is time to challenge the governance of Chinese government. I believe they will find a solution,” said Gian Maria Milesi-Ferretti, a chief economist at IMF.