BEIJING — China’s economy still enjoys the potential and conditions for medium-high growth, and it is not likely to go through a “deep adjustment,” an official said on May 18.
“Currently, China’s economy is witnessing a stalemate between drivers of growth and downward pressure, Sheng Laiyun, spokesperson with the National Bureau of Statistics (NBS), told the press.
The economy faces pressure from both inside and outside the country, but it will not see a sharp fall with industrialization and urbanization still in progress, continued upgrading of consumption and new growth engines replacing old ones, Sheng said.
“These basic factors indicate that China’s economy still boasts the potential and conditions for further medium-high speed of growth,” he said.
The country’s GDP grew 6.7 percent year on year in the first quarter of this year, down from 6.8 percent in the final quarter of 2015, NBS data showed. Consumption’s contribution to GDP growth reached 84.7 percent in the first quarter.
In the future, the country should continue to unleash the potential of consumption, intensify supply-side reform, create effective demand, while maintaining steady growth in investment, Sheng said.