Research group: china to see better economic growth in 2020

CNC
Added On October 14, 2019

 A New York-based research group has forecast improved economic growth for China next year as industrial restructuring efforts begin to pay off.

Erik Lundh, a senior economist at the research group called "The Conference Board", made the remarks on Thursday. 

According to Lundh, China's campaign to eliminate overcapacity has started to pay dividends and that will contribute a lot to the country's economic improvement. 

SOUNDBITE 1 (English): ERIK LUNDH, Senior Economist, The Conference Board 

"I think a lot of the improvements that we're expecting to see are really a function of  the the campaign to  eliminate  overcapacity, starting to pay some dividends. And so within industrial sectors inside of china, I think we'll start to see some improvements as a function of that." 

Lundh added that more productivity growth in the country will be seen over the next decade, mitigating the impact of continued GDP deceleration. 

The research group's chief economist Bart van Ark also expects things to start picking up next year as China's overcapacity problem is addressed, supply chains get restructured, the risk of trade disputes recedes, and productivity growth recovers.