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Chinese economy grew 'around 6.9%' in 2017: premier

AFP  |  Beijing 

China's expects economic growth of around 6.9 per cent for 2017, as he saw a "better than expected" outlook for the world's second-largest economy, said today.

The authorities will release official gross domestic product figures next week but has given his own forecast.

"Over the past year, the Chinese economy has been on a stable and favourable development path, with its overall circumstances better than expected," Li said in a speech Wednesday at a diplomatic summit in Cambodia, according to the official agency.

The Chinese economy grew 6.7 per cent in 2016 -- its slowest pace for more than a quarter of a century.

But the country experienced a rebound in the first half of 2017, posting 6.9 per cent growth over that period, as well as an increase of 6.8 per cent in the third quarter, thanks to soaring credit and in infrastructure.

In an effort to stem winter air pollution, authorities in recent months have conducted a massive campaign to shut down polluting factories and slash excess industrial capacity, particularly in the north.

According to analysts, the aggressive campaign might have stalled growth in the fourth quarter, due to the slowdown in industrial production.

But Li said: "The is expected to grow by around 6.9 per cent."

His figure is slightly better than the 6.8 per cent forecast by the Chinese Academy of Social Sciences, a top state think tank.

"The crux of why the Chinese economy was able to perform so well is that we insisted on not implementing a flood of stimuli" and instead sought to foster "new sources of growth", he said.

seeks to rebalance China's economic model towards services -- which already account for more than 50 percent of GDP -- as well as neexports, moving away from heavy industries plagued by severe overcapacity and indebtedness.

The investment-heavy and export-dependent model that brought four decades of breakneck economic growth has left the country heavily in debt.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, January 11 2018. 13:10 IST