China’s Economy to Post High GDP Growth for 2015
According to the Asian Development Bank the country is set to post a Gross Domestic Product growth of 7.2 percent for this year and 7 percent growth next year. This will likely help the largest economy in the Asia to retain its position as the biggest contributor to the world GDP growth in the span of two years.
The Chinese economy can continue to deliver a solid growth just as that government maintains a steady progress on its reform agenda that can help elevate productivity. Plus with a deepening financial sector reform such as reducing dominance of State owned banks, liberalizing interest rates , and preserving financial stability are part of the key elements in the much needed reform package. Thus China’s economy will contribute 32 percent of the world’s growth for this year.
Meanwhile the strengthening of the RMB against other currencies of most of the country’s partners starting in May 2014 is now in line with the strongly appreciated US dollar. The monetary policy in China continues to maintain the balance between limiting credit expansion in the financial and property sectors and at the same time accommodate the need for credit support to small and medium sized enterprises.