Economists: China to maintain steady growth in 2020

Added On January 13, 2020

Economists say China is capable of maintaining steady economic growth in the year to come and beyond despite mounting downward pressure.

At a panel themed on "Forecast of China's Economy for 2020" in New York, Chinese and American economists has shared their insights on macro-economic trends, reform possibilities, as well as expected challenges and opportunities in 2020 and beyond.
SOUNDBITE 1 (English): YAO YANG, Professor of the National School of Development, Peking University
"China's role in the world economy has been increasingly more important. Study has shown that the last round of common growth in the world starting from 2016 had a lot to do with the boom in China. And of course, the Chinese economy has slowed down substantially in the last two years, and we see that has an impact on the world. But on the other hand, a common reform is still moving on in China. One of the big reform is the continuing of opening of the financial markets in China. Many American financial institutions have started to work with the Chinese authorities."
Panelists lauded China's vigorous efforts in deepening further reform and opening up, while tackling challenges in recent years. They believe that China's economy will maintain steady growth in 2020 despite headwinds.
China has vowed to keep opening up its financial sector while controlling risks, with the country introducing 34 opening-up policies in the banking and insurance sectors in the past two years, including expanding the business scope of foreign-invested firms and easing market access.
Official data shows that the country registered a 6.2-percent growth year on year during the first three quarters of 2019.
Consumption continued to be the mainstay in driving up demand, with the final consumption contributing more than 60 percent to the economic growth in the January-September period.
SOUNDBITE 2 (English): CATHERINE MANN, Global chief economist at Citi
"We do have the Chinese economy slowing, from 6.2 this year to 5.8 next year. That's our projections in our last round of forecasts. Now we believe that's in line with the objectives of the authorities and that they will put into place the appropriate set of policies in order to achieve that sort of glide path to a more balanced growth rate. The key factors are the rebalancing, the challenge of rebalancing, from export orientation and investment orientation towards a more consumer oriented development strategy."
The half-day event was presented by the National Committee on U.S.-China Relations and Peking University's China Center for Economic Research.