World Bank raises China 2017 growth forecast, maintains 2018 outlook

The World Bank on Tuesday raised its forecast for China's economic growth in 2017 to 6.8% against 6.7% in October, with private consumption and foreign trade supporting growth.

But the Washington-based lender maintained its forecast for China's GDP growth of 2018 and 2019 at 6.4% and 6.3%, respectively, due to a less accommodative monetary policy and efforts government to control the leverage.

The main downside risks to forecasts are the still growing leverage of the non-financial sector and the uncertainty surrounding housing prices.

"Despite the recent slowdown, credit continues to grow much faster than GDP, with bank lending in progress reaching 150 percent of GDP in November 2017, up from 103 percent at the end of 2007," said the World Bank. in its publication China Economic Update.

The Chinese economy has grown faster than expected by 6.9% over the first nine months of the year, but Beijing's campaign to reduce risk in the financial sector has pushed up the costs of borrowing.

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