World Bank raises China's growth forecast to 6.7% from 6.5%

The World Bank has raised China's growth forecast for 2017 from 6.5 per cent to 6.7 per cent and from 6.3 per cent to 6.4 per cent in 2018, authorities said on Thursday.

In its latest East Asia and Pacific Economic Update report, the World Bank pointed out the new forecast follows an improvement in forecast for the entire Asian region, which is expected to grow at 6.4 per cent in 2017 as compared to 6.2 per cent that was announced in April, and of 6.2 per cent in 2018, as compared to 6.1 per cent six months ago.

According to the Washington-based institution, the upward revision of the forecast is partly owing to government measures to check overcapacity, credit expansion and restructuring of state corporations, and streamlining the country's shadow banking sector, reports Efe news.

The report added geopolitical tension, rising trade protectionism and economic nationalism could, however, affect growth elements such as exports, whose recovery this year contributed to growth.

China's growth is expected to be moderate in 2018 and 2019, although it will still be higher than that of many other Asian economies, the report said.

In the first quarter of 2017, China grew at 6.9 per cent, partially due to increased consumption that contributed 4.4 per cent to the country's growth, while investment contributed 2.8 per cent.

The World Bank's forecast is in line with the Asian Development Bank, which at the end of September had said China's economy is expected to grow at 6.7 per cent this year.