Adviser to the Central Bank of China calls for flexible growth target for 2017
The Chinese government should establish a more flexible economic growth target for this year to give more room for reform efforts, said a councilor at Xinhua news agency official of the central bank in the comments published on Sunday.
The Chinese economy grew by 6.7 percent in the third quarter over the previous year and appears ready to meet government forecasts of 6.5 to 7 percent, driven by increased public spending, real estate boom And a bank loan file.
However, rising debt and concerns about property bubbles have led to an internal debate as to whether China should tolerate slower growth in 2017 to allow more room for painful reforms aimed at reducing industrial overcapacity and debt.
Huang Yiping, a member of the Monetary Policy Committee of the Central Bank of China and a professor at Peking University, told Xinhua that the range of China's GDP growth is expected to be 6-7 percent this year, Compared with 6.5-7 per cent in 2016.
"The target of 6.5 percent is only an average rate," Huang said. "Although employment is stable, the growth of a slightly wider range of short-term goals to reduce the need for growth efforts and give more political space to focus on reforms."
Chinese steel worker helps load steel bars in a large truck for transport to a factory in Tangshan 6 April, 2016, Hebei Province, China.
Growth target this year will determine the government's monetary policy, Huang said.
"Monetary easing on a large scale is unlikely, while the possibility can not be ruled out hardening," he added, citing concerns about inflation, higher interest rates in the United States and Weakening of the yuan.
While the yuan is under the pressure of rising interest rates in the United States in the short term, Huang said the yuan exchange rate will be "largely affected by investor expectations on China's economic growth," he said. Said Xinhua. As the Chinese diversify their investment portfolio capital outflow "will only last a while" in the future, Huang added.
In 2016, the Yuan posted its biggest annual loss against the dollar since 1994, making it the most performing Asian currency during the year.