Chinese economy gains strong momentum for growth amid global slowdown

China has full confidence in the positive long-term outlook and sound growth of its economy despite the global slowdown, the ruling Communist Party of China (CPC) said Tuesday.

The economy has strong momentum for steady progress and growth, and major international institutions have revised up their growth forecasts for China, Tuo Zhen, spokesperson for the 19th Congress CPC told media here.

The once-in-a-five-years Congress will open here tomorrow and conclude on October 24. Besides endorsing a second term for President Xi Jinping it is expected to elect a new set of officials.

The International Monetary Fund (IMF) on October 10 raised its forecast for China’s economic growth in 2017 and 2018, citing the stronger-than-expected performance in the first half of the year.

In its latest World Economic Outlook, the IMF expected the Chinese economy to grow 6.8 percent this year and 6.5 percent next year, both 0.1 percentage point higher than its previous forecast in July.

Earlier, the World bank had upgraded China’s 2017 and 2018 economic growth forecasts by 0.2 and 0.1 percentage points to 6.7 percent and 6.4 percent respectively. China’s GDP grew 6.9 percent year-on-year in the first half.

Tuo dismissed concerns over any possible negative impact from measures to deleverage the economy, saying reducing leverage and stabilising growth should not be seen as conflicting with each other.

Deleveraging can help defuse latent risks that affect the steady, healthy development of the economy and can boost the economy’s resilience in the medium to long-term, Tuo said.

“Initial progress has already been made in the efforts to reduce leverage, and it has not had any significant dampening effect on the economy,” he said.

Between 2013 and 2016, China’s GDP maintained an annual average growth rate of 7.2 percent, contributing more than 30 percent of the global economic growth, according to Tuo.

The economic structure is optimised, with the shift between old and new growth momentum accelerating and people’s wellbeing improving, he said.

He said China’s determination to deepen reform has increased the momentum and vitality of economic and social development. The 19th CPC National Congress will map out new strategic measures for the country’s reform and development in the coming five years and beyond, advancing reform from a higher starting point, Tuo said.